Ch.12&13: Marketing Mix

Question 1

Marketing Mix

Answer 1

4 marketing decisions needed for the effective marketing of a product

Question 2

4 Ps

Answer 2

The right product at the right price with the right promotion in the right place

Question 3

Product

Answer 3

The goods and services produced to satisfy a customer need or want

Question 4

Brand

Answer 4

A name, image or symbol that distinguishes a product from competitors’ products

Question 5

Brand image

Answer 5

The general impression of a product held by consumers

Question 6

Product life cycle

Answer 6

The pattern of sales of a product from introduction to its withdrawal from the market

Question 7

Extension strategies

Answer 7

Marketing activities to extend the maturity stage of a product

Question 8

Price

Answer 8

The amount paid by the customer to the supplier when buying a good or service

Question 9

Product quality

Answer 9

The product meets the needs and expectations of customers

Question 10

Market skimming

Answer 10

Setting a high price for a new product that is unique or very different from any other product on the market

Question 11

Penetration pricing

Answer 11

Setting a low price to attract customers to buy a new product

Question 12

Competitive pricing

Answer 12

Setting a price similar to that of competitors’ products which are already established in the market

Question 13

Price leadership

Answer 13

Smaller firms set their price based on the price set by the dominant firm in the industry

Question 14

Loss-leader pricing

Answer 14

Setting the price of a small number of products at below cost to attract customers into the outlet in the hope that they will buy other products priced to earn profit

Question 15

Cost-plus pricing

Answer 15

Setting price by adding a fixed amount to the cost of making or buying the product

Question 16

Demand

Answer 16

The quantity of goods and services consumers are willing and able to buy

Question 17

Price elasticity of demand

Answer 17

Measures by how much demand for a product changes when there is a change in its price

Question 18

Price inelastic demand

Answer 18

The percentage change in demand is less than the percentage change in price

Question 19

Price elastic demand

Answer 19

The percentage change in demand is greater than the percentage change in price

Question 20

Revenue

Answer 20

The amount earned by a business from the sale of its products

Question 21

Channels of distribution

Answer 21

How a product gets from the producer to the final consumer

Question 22

Wholesaler

Answer 22

A business that buys products in bulk from producers and then sells them to retailers

Question 23

Retailer

Answer 23

Shops and other outlets that sell goods and services to the final consumer

Question 24

Middlemen

Answer 24

These are the intermediaries in the channels of distribution, for example wholesalers and retailers

Question 25

Direct selling

Answer 25

The product is sold by the producer directly to the final consumer without the need for any middlemen.

Question 26

Promotion

Answer 26

Marketing activities used to communicate with customers to inform and persuade them to buy a business’s products

Question 27

Advertising

Answer 27

Paid-for communication with consumers which uses printed and visual media. The aim is to inform and persuade consumers to buy a product

Question 28

Informative advertising

Answer 28

Information about the product communicated to consumers to create product awareness and attract their interest

Question 29

Persuasive advertising

Answer 29

Communication with consumers aimed at getting them to buy a firm’s product rather than a competitor’s product

Question 30

Below-the-line promotion

Answer 30

Promotion that is not paid-for communication but uses incentives to encourage consumers to buy

Question 31

Sales promotion

Answer 31

Incentives used to encourage short-term increases in sales or repeat purchases

Question 32

Personal selling

Answer 32

Sales staff communicate directly with the consumer to achieve a sale and form a long-term relationship between firm and consumers

Question 33

Direct mail

Answer 33

Also known as ‘mailshots’; printed materials which are sent directly to the addresses of customers

Question 34

Sponsorship

Answer 34

Payment by a business to have its name associated with a particular event

Question 35

Marketing budget

Answer 35

The amount of money made available by a business for its marketing activities during a particular period of time

Question 36

E-commerce

Answer 36

Use of the internet and other technologies by businesses to market and sell goods and services to customers