chapter 12

Question 1

define marketing mix

Answer 1

The marketing mix is
a term which is used to
describe all the activities
which go into marketing
a product or service.
These activities are often
summarised as the four Ps
– product, price, place and
promotion

Question 2

what are the four Ps of the marketing mix

Answer 2

product, price, place, promotion

Question 3

what are the different types of products

Answer 3

Consumer goods, Consumer services, Producer goods, Producer services

Question 4

define unique selling point (usp)

Answer 4

The USP is the special
feature of a product that
differentiates it from the
products of competitor

Question 5

what are the benefits of developing new products

Answer 5

• Unique Selling Point (USP) will mean the business will be first into the market
  with the new product.
• Diversification for the business, giving it a broader range of products to sell.
• It allows the business to expand into new markets.
• It may allow the business to expand into existing markets

Question 6

what are the costs when it comes to developing new products

Answer 6

• The costs of carrying out market research and analysing the findings.
• The costs of producing trial products, including the costs of wasted materials.
• The lack of sales if the target market is wrong.
• The loss of company image if the new product fails to meet customer needs.

Question 7

define brand name

Answer 7

The brand name is the
unique name of a product
that distinguishes it from
other brands

Question 8

define brand loyalty

Answer 8

Brand loyalty is when
consumers keep buying
the same brand again and
again instead of choosing a
competitor’s brand

Question 9

define brand image

Answer 9

Brand image is an image or
identity given to a product
which gives it a personality
of its own and distinguishes
it from its competitors’
brands

Question 10

define packaging

Answer 10

Packaging is the physical
container or wrapping for
a product. It is also used
for promotion and selling
appeal

Question 11

define the product life cycle

Answer 11

The product life cycle
describes the stages a
product will pass through
from its introduction,
through its growth until it is
mature, and then finally its
declin

Question 12

define extension strategy

Answer 12

Extension strategy is a
way of keeping a product
at the maturity stage of the
life cycle and extending the
cycle