5.4 To 5.6 - The Marketing Mix (Product, Promotion, Sales)

Question 1

Skimming

Answer 1

New or unique products/services to the market being charged at high prices

Question 2

Penetration

Answer 2

Setting prices really low for a new product/service

Question 3

5 marketing methods

Answer 3

Skimming, Penetration, Competitive, Loss Leader, Cost plus

Question 4

Competitive pricing

Answer 4

Some products will be priced similarily to their competitors

Question 5

Who are Retailers

Answer 5

Retailers sell goods direct to a consumer
Retailers mark up prices of goods, so they will be more than they paid for them to make a profit

Question 6

Examples of retailers

Answer 6

• ASDA
• Tesco
• Sainsbury’s
• Marks and Spencers
• Morrisons
• John Lewis

Question 7

Who are Independant retailers

Answer 7

Independant retailers are smaller retailers usually started by the business owner.
Usually focus on non price factors. I.e customer service

Question 8

Advantages of being a retailer

Answer 8

• Shopping is enjoyable. Customers can do with family & friends
• Trying on clothes helps when buying
• Customers can have the product as soon as they buy it - instant satisfaction

Question 9

Disadvantages of being a retailer

Answer 9

• Retailers are only open during the day. Customers may be busy with work & family
• Customers may have to wait in a queue or carry heavy bags of shopping

Question 10

Telesales (or telemarketing)

Answer 10

Involves talking to potential & existing customers over the phone

Can be used to:
- Promote new products
- Generate leads
- Stay in touch with customers

Question 11

E-commerce

Answer 11

Buying products online.

Question 12

Advantages of e-commerce

Answer 12

• Access to global marketplace
• Business is open 24/7
• Customers from all over the world can see your products/services
• No business rents to pay, no heating bills etc

Question 13

Disadvantages of e-commerce

Answer 13

• Being part of global market = lots of competition with others
• Keeping website up-to-date is expensive. May need IT specialist
• Distribution of products can be costly

Question 14

What is M-commerce

Answer 14

M-commerce is a type of e-commerce but conducted through mobile devices

Question 15

What is the marketing mix

Answer 15

A marketing tool used to attract customers of a business
The tool is made up of the 4 Ps. Product, Price, Place Promotion