Exploring marketing strategies (CH 8)

Question 1

What is product differentiation used for and types of it?

Answer 1

Using branding to stand out

• Packaging
• Advertising
• Product placement

Question 2

What can advertising and promotional methods result in and what’s it used for?

Answer 2

Results in increased demand and market equilibrium (price and quantity of the market)

• Used to make brand more known
• Influence consumer preference
• Increases brand loyalty - Price inelastic - Keeps customers - Increases market share

Question 3

What’s distribution methods and what’s it used to do?

Answer 3

Delivers product/ services from point of production to consumers

• Makes demand price inelastic
• Allows firms to charge higher prices for product to maximise revenue + profit which passes higher prices onto the consumer