Elements Of The Marketing Mix

Question 1

Marketing mix

Answer 1

The factors that influence consumers buying decisions - the four p’s

Question 2

Elements of the marketing mix

Answer 2

Product - design, features and functions.
Price
Promotion - if they don’t know about it they won’t buy. Communication
Place - where it is bought and how products are distributed to their customers

Question 3

Methods used by businesses to set prices

Answer 3

Price skimming
Price penetration
Cost - plus pricing
Competitive pricing
Loss leader

Question 4

Price skimming

Answer 4

Setting a high price for a product when it first enter the market. Likely to be successful if product is distinctive. High level of revenue

Question 5

Price penetration

Answer 5

Launching new product at low price with aim to achieve high sales. Business can negotiate bulk purchases from suppliers. Can be risky if strong business reduce there price

Question 6

Competitive pricing

Answer 6

Matching the prices charged by customers. Common where there are a limited number of sellers. If low, competitions will match - all businesses make less profit

Question 7

Loss leader

Answer 7

A product is priced to sell at a loss in the hope that customers will also buy other items from the business, and it will make a profit

Question 8

Cost - plus pricing

Answer 8

A product is priced to cover the cost of ur and a percentage profit is added on top. Simple method often used by retailers. Often ignored what competitors are doing

Question 10

What are the factors that influence the choice of pricing method?

Answer 10

Costs
Businesses reputation
Nature of the market
Whether the business has an objective of growth
Degree of competition
The product life cycle stage