Chapter 5,7,9

Question 1

What questions do marketing and production teams need to ask?

Answer 1

The production team asks, ‘Can we produce it?’ and the marketing department asks, ‘Can we sell it?’

Question 2

What is a feasibility study?

Answer 2

A study to determine if any business opportunity is possible, practical, and viable.

Question 3

What is the difference between an invention and an innovation?

Answer 3

Inventions are new devices, methods, or processes developed from study and experimentation. Innovations are products that use new technology or processes to change production or distribution methods.

Examples: Inventions include a fridge, microwave, telephone. Innovations include Uber.

Question 4

What are the stages of product development?

Answer 4

The stages are: Idea generation, Idea screening, Concept development, Market strategy, Feasibility study, Product design, Test marketing, Market entry. i.i.c.m.f.p.t.m

Question 5

How do you calculate the break-even point?

Answer 5

Calculate variable costs, fixed costs, and gross profit.
Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.

Question 6

What does economies of scale mean?

Answer 6

The more products a company makes, the lower the cost of production for each item.

Marketers use economies of scale to develop products, create barriers to entry, merge with competitors, and develop new pricing strategies.

Question 7

What factors may affect the price of a product?

Answer 7

Laws, Product Positioning, Consumer Demand, Competition. L.P.C.C

Question 8

When is advertising important?

Answer 8

Advertising is important when brands are identical, mass marketed, easy to describe, low priced, heavily competitive, or when introducing a new brand.

Question 9

What is an advertising agency?

Answer 9

An agency that determines the unique selling proposition (USP) and the big idea of a product.

Question 10

Why do advertisers repeat details about the product?

Answer 10

To increase brand awareness and consumer recall.

Question 11

What is the role of a copywriter?

Answer 11

A copywriter writes promotional materials like emails, ads, and websites, articulating words targeted to customers.

Question 12

What does an account director do?

Answer 12

An account director leads client accounts, ensuring profitability and growth, and maintains client relationships.

Question 13

What is the role of an art director?

Answer 13

An art director develops a creative vision for visual elements and guides a team of designers and artists.

Question 14

What does SWOT stand for?

Answer 14

Strengths, Weaknesses, Opportunities, Threats.

Question 15

What are the different types of appeals in advertising?

Answer 15

Biological, Emotional, Rational, Social.

Example: A biological appeal may make consumers more nervous about a product.

Question 16

What is the difference between reach and frequency?

Answer 16

Reach is the number of people exposed to a message, while frequency is the number of times an audience sees or hears the same message.

Question 17

What tools do Internet advertisers use?

Answer 17

Social media, billboards, television, and commercials, following the AIDA formula.

Question 18

What are sales promotions?

Answer 18

Non-personal activities to directly increase sales over a specific period, adding value by reducing price or offering rewards.

Question 19

What is the AIDA Formula?

Answer 19

Attention

Interest: An ad must be able to hold the interest of the audience

Desire: Ads must generate a desire to learn more about the product or service or a desire to acquire

Action : If the advertiser has successfully attracted attention, created interest, and stimulated desire the consumer should be thinking, “I want to purchase this product”