Chapter 6

Question 1

Product

Answer 1

A good or service that can be offered in exchange for the purpose of satisfying a need or a want.

Question 2

Price

Answer 2

Prices are set according to competitors, supply and demand and cost plus margin (profit made on top of cost of item)

Question 3

Place

Answer 3

Refers to distribution channel

• producer to customer
• producer to retailer to customer
• consumer
• non store selling
• e-marketing

Question 4

Promotion

Answer 4

A promotion mix is the various methods used in a business promotional campaign

Question 5

People

Answer 5

Owners, managers and customers

Question 6

Physical evidence

Answer 6

• Demonstrating features of a product
• physical state of the businesses premises
• access to customer feedback (trip advisor)

Question 7

Process

Answer 7

• businesses have operating systems and processes

- negative processes are wait times, long ques ect

Question 8

Stages of product lifecycle

Answer 8

1. Introduction
2. Growth
3. Maturity
4. Decline
5. Extension

Question 9

Public relations

Answer 9

Consists of activities undertaken by businesses to promote a positive relationship with public’s

Question 10

Public’s

Answer 10

Term public’s refers to the target audience/demographic e.g males over 40 
Types include :
- media public’s 
- internal public’s ( employees ) 
- general public’s ( society)

Question 11

Advertising and public relations difference

Answer 11

With advertising you control everything you say whereas with public relations it is a gamble as you cannot estimate the amount of media publicity

Question 12

Public relations strategy

Answer 12

1. Establish objectives of campaign
2. Identify the public (target group)
3. develop tactics ( posters e.c.t)
4. Implement pr campaign
5. Evaluate results (return of investment)