Chapter 19- Marketing Mix

Question 1

What is the marketing mix?

Answer 1

A combination of four elements that can help a business market its products or services to its target market

Question 2

What are the 4P’s?

Answer 2

Product
Price
Place
Promotion

Question 3

Product:

Answer 3

A product is the actual item (either a physical good or a service) provided to meet customer’s needs

Question 4

What influences the success of a product?

Answer 4

Design
Product Life Cycle
Branding
Unique Selling Point (USP)

Question 5

Talk about a specific product you have studied in relation to PRODUCT.

Answer 5

Apple mostly comes out with a new iPhone product every year, which replaces the previous ones

Question 6

What are the iPhone products currently available and where are some on the Product Life Cycle?

Answer 6

iPhone X (introduction)
iPhone 8 (growth)
iPhone 7 (maturity)
iPhone 6s (decline)
iPhone SE (decline?)

Question 7

What is the USP?

Answer 7

The unique selling point is what makes the product different from the competition and is highlighted to encourage people to buy the product

Question 8

What USPs does the Apple iPhone have?

Answer 8

• Unique operating system (iOS)
• Apps that can only be bought in the Apple App Store
• Good quality camera, although it is debated whether it is the best
• Siri

Question 9

Price:

Answer 9

Refers to the amount of money a seller charges a customer for a product or service

Question 10

What does the price charged depend on?

Answer 10

Cost of producing product/ service
Amount of profit the business wants to make
Stage of product life cycle
Competitor’s prices
Target market

Question 11

Pricing Strategies:

Answer 11

Cost-plus pricing
Loss leaders
Premium pricing
Penetration pricing

Question 12

Cost-plus pricing:

Answer 12

Takes the cost to make the product and adds a percentage of profit on to get the final cost of the item for customers

Question 13

Loss leaders:

Answer 13

Selling a product below the cost it takes to make in order to attract customers

Question 14

Premium pricing:

Answer 14

Charging a permanently high price to give the impression of luxury

Question 15

Penetration pricing:

Answer 15

Charging a low price when a product is first introduced to encourage sales but increasing the price once sales have reached a certain level

Question 16

Apple iPhone pricing strategy:

Answer 16

Apple use a premium pricing strategy for their iPhone products. They charge a high price for their products and this is accepted by their target market as they are loyal to Apple (brand loyal)

Question 17

Place:

Answer 17

Refers to where customers will buy the product and the channel of distribution used to get the product to its location

Question 18

Channel of distribution:

Answer 18

Refers to the way in which the product gets from the manufacturer to the consumer.

Question 19

What are the 4 different channels of distribution?

Answer 19

Manufacturer to Consumer EG online from company website
Manufacturer to Large Retailers EG Tesco
Manufacturer to Wholesaler to Retailer EG Dealz
Manufacturer to Wholesaler to Consumer EG Amazon

Question 20

Apple iPhone and Place:

Answer 20

Apple use the following channels of distribution to sell their iPhone:

Manufacturer to Consumer through their website (www.apple.com) and their Apple Stores
Manufacturer to Large Retailers EG CompuB and Harvey Norman

Question 21

Promotion:

Answer 21

Refers to raising customer awareness of the product or brand in order to increase sales and create brand loyalty

Question 22

Methods of promotion: (4)

Answer 22

Advertising
Sales Promotion
Social Media
Celebrity Endorsement

Question 23

Advertising:

Answer 23

Includes communicating with the public to let them know about a product and get them interested in buying it EG television, radio, newspapers and billboards

Question 24

Sales Promotion:

Answer 24

There are incentives offered to customers to attract them to buy a product EG free samples

Question 25

Social Media:

Answer 25

Many businesses use social media to promote their product to potential customers EG Facebook

Question 26

Celebrity Endorsement:

Answer 26

Businesses pay celebrities to promote their products by wearing them or appearing in an advert for the product EG David Beckam and H&M

Question 27

Apple iPhone and Promotion:

Answer 27

Apple uses the following promotional methods to get customers interested in their iPhone products: Advertising Personal selling Social media

Question 28

Apple and advertising

Answer 28

Apple advertise by many means, such as the television, online adverts, magazines and billboards

Question 29

Personal selling:

Answer 29

Sales people in their stores help customers pick the product suitable for them. Apple are also known for their after-sales support services IE ‘Genius Bar’

Question 30

Apple and social media

Answer 30

Apple have social media accounts on Facebook and Instagram