Ch8

Question 1

Outline the 4Ps and 7Ps in the Marketing Mix

Answer 1

4 Ps:

1) Product
2) Promotion (Push Vs Pull)
3) Place (Distribution - Direct Vs Indirect)
4) Price (4Cs of pricing: Cost, Consumers, Competition, Corporate Objectives)

7Ps: Marketing of Services

1) People (Attitude, professionalism)
2) Process
3) Physical Evidence (Haircut)

Question 2

Name 5 pricing strategies

Answer 2

1) Price Skimming (Prices initially high - e.g. new mobile phones)
2) Penetration
3) Price Discrimination (Different customers charged different prices)
4) Going rate
5) Cost-plus pricing

Question 3

What is a Giffin good?

Answer 3

As Price increase, Demand also increase (e.g. Bread)

Question 4

What is a Veblen good?

Answer 4

Luxury item (e.g. RR)