C1F Marketing Mix

Question 1

4 components of marketing mix

Answer 1

Product
Price
Promotion
Place

Question 2

when a marketing mix is based on what a market wants it is …

Answer 2

Market orientated

Question 3

Benefits of market orientation

Answer 3

Flexible to changes in fashion
Based on market research
Designed to meet needs

Question 4

Drawbacks of market orientation

Answer 4

Market research costs
Constant change
Unpredictable

Question 5

When the marketing mix is focused on the internal strengths of the business…

Answer 5

Product orientated

Question 6

Benefits of product orientation

Answer 6

+ EOS
+ focus on product development
+ Focus on quality

Question 7

Drawbacks of product orientation

Answer 7

• market change ignored
• don’t consider consumer needs/wants
• fashion not considered

Question 8

When the marketing mix is focused on what is good and applying it to satisfy demand

Answer 8

Asset led

Question 9

Benefits of being asset led

Answer 9

+ quality
+ progressive change
+ max return on assets

Question 10

What is product breadth?

Answer 10

No. of product lines

Question 11

What is product depth?

Answer 11

No. of product varieties

Question 12

3 advantages of branding

Answer 12

\+ increased loyalty 
\+ distinguish from competition
\+ increase PED
\+ ease choice
\+ increase value

Question 13

3 drawbacks from branding

Answer 13

• high advertisement costs
• delicate reputation
• high R&D costs
• brands invite comp

Question 14

Methods of product differentiation

Answer 14

• promotion
• add-ons
• quality
• form
• packaging

Question 15

5 stages in the product life cycle

Answer 15

1. Intro
2. Growth
3. Maturity
4. Saturation
5. Decline

Question 16

Why use extension strategies on a products lifecycle?

Answer 16

• replace ageing products

- prevent decline

Question 17

Examples of extension strategies for a product life cycle

Answer 17

Relaunch
Reposition
Rebrand

Question 18

4 areas in the Boston Matrix

Answer 18

Market Question marks —— Stars
Growth ———————————————
Dogs —— Cash cows

                                                 Market share

Question 19

Why use the boston matrix?

Answer 19

Manage products/ portfolio

See if products are in successful markets

Question 20

Characteristics of a ‘question mark’ product

Answer 20

Fast market growth, low market share
Products not selling
Being beaten by comp
Possible relaunch or redesign needed

Question 21

Characteristics of ‘star’ products

Answer 21

Fast market growth, high market share 
Immature market 
High competition
High revenues & costs
High advertising 
Brands have to be established

Question 22

Characteristics of ‘dog’ products

Answer 22

Slow market growth, low market share
Mature market
Marginally profitable
Could provide synergies 
Worth investing

Question 23

Characteristics of ‘cash cow’ products

Answer 23

Slow market growth, high market share
High profits, low costs
Brands established

Question 24

6 market oriented pricing strategies

Answer 24

Market skimming
Market penetration
Going rate
Psychological pricing
Loss leader
Destroyer pricing

Question 25

3 cost based pricing strategies

Answer 25

Cost plus Full cost Contribution

Question 26

Criticisms of cost based pricing

Answer 26

- no account for consumer needs - overheads can be complex - too rigid - no account for market situation

Question 27

Promotion is used to ....

Answer 27

Attract, gain & retain customers

Question 28

Objectives of promotion ...

Answer 28

``` Provide info Increase sales Increase market share Establish brand Establish image ```

Question 29

Factors effecting promotion..

Answer 29

``` Differentiation Market budget Stage in life cycle Target market Cultural sensitivity Competition ```

Question 30

2 types of promo

Answer 30

Above the line | Below the line

Question 31

Above the line promo is done via...

Answer 31

Independent media | ie. tv, magazines, newspapers, radio, internet

Question 32

Persuasive ads sell via....

Answer 32

The product image, style, aspirations

Question 33

Informative ads sell via...

Answer 33

Information

Question 34

Below the line promotion offers....

Answer 34

A range of alternative promotion strategies

Question 35

Below the line promotion examples...

Answer 35

``` Personal selling Packaging Sale promo Direct mailing Exhibitions PR ```

Question 36

Define ‘place’

Answer 36

Place is where businesses sell products and their methods

Question 37

Why is place important?

Answer 37

It’s used to establish identity | To sell through ranges

Question 38

What does distribution mean?

Answer 38

How goods get to the consumer | ie. via wholesaler, retailer, direct

Question 39

Using a combination of channels of distribution is called....

Answer 39

Multi channel distribution

Question 40

Priorities of the marketing mix depend on....

Answer 40

Consumer needs Competitors actions Nature of product

Question 41

How marketing mix effects local markets

Answer 41

Specific tactics used to adapt to local trends

Question 42

How marketing mix effects national markets

Answer 42

Need for consistency | Brand needs to be known

Question 43

How marketing mix effects global markets

Answer 43

Identifiable brand needed Ads need to b as homogenous as possible Different pricing my be needed

Question 44

How marketing mix effects goods & services markets

Answer 44

Services harder to market - thus key to be clear & simple

Question 45

How marketing mix effects niche markets

Answer 45

Need to understand fully the needs and desires of the niche

Question 46

How marketing mix effects mass markets

Answer 46

Not an option for some as hugely expensive development costs