IAS semester 1

Question 1

4P in Marketing

Answer 1

Product, Price, Pomotion, Place

Question 2

Define Promotion

Answer 2

The use of advertising, sales promotion, sponsorships etc. to inform/persuade to purchase product

Question 3

Aims of Promotion

Answer 3

• increase sales by raising consumer awareness of a product – especially important for newly launched ones
• remind consumers of an existing product and its distinctive qualities
• increase purchases by existing consumers or to attract new consumers to the brand
• correct misleading reports about the product or the business and to reassure the consuming public after a ‘scare’ or an accident involving the product
• develop the public image of the business – rather than the product – through corporate advertising
• encourage retailers to stock and actively promote products to the final consumer

Question 4

Advertising

Answer 4

business by paying for communication with consumers

A.K.A. Above the line advertising (ATL)

Question 5

Sales promotion

Answer 5

Below-the-line promotions are short-term incentives for consumers or retailers to increase sales and encourage repeat purchases, rather than directly paid communication methods. Price deals, buy one get one free, coupons, etc.

A.K.A. Below the Line (BTL)

Question 6

Types of Adverts

There’s two main types.

Answer 6

• Informative: provides info on a product such as its price, specs, purchase locations etc.
• Persuasive: Creating distinct image/brand identity for the product,

Question 7

Branding

Answer 7

the strategy of differentiating products from those of competitors by creating an identifiable image and clear expectation about a product

Question 8

Why Place matters

Answer 8

Channel of distribution

different channels vary depending on different facotrs like who u sellin

Question 9

Channels of distribution

Answer 9

Zero-channel: Producer -> Consumer

One-channel: Producer -> Retailer-> Consumer

Two-channel: Producer->Wholesaler-> Retailer -> Consumer

Three- channel: Producer-> Agent-> Wholesaler-> Retailer -> Consumer

Question 10

Online marketing

Answer 10

advertising and marketing activities that use the Internet, email, and mobile communications to encourage direct sales via electronic commerce

Question 11

E-commerce

Answer 11

the buying and selling of goods and services by businesses and consumers through an electronic medium

Question 12

Viral marketing

Answer 12

the use of social media sites or text messages to increase brand awareness or sell products

Question 13

Product

Answer 13

End product of what producers provide for customer. Tangible and intangible goods.

Question 15

What makes a good product

Answer 15

Unique selling point: Promotion focusing on the product’s unique selling point offers higher prices due to exclusive design or service, free publicity from business media, higher sales than undifferentiated products, and increased customer identification due to brand differentiation.

Question 16

Product life cycle

Answer 16

• Introduction: When a product is first introduced to a market
• Growth: Demands for product increase, companies could choose to invest money to improve product/focus on advertisements to improve differentiation from other products.
• Maturity: Selling at a stable rate. Should now focus on differentiating from other products to keep staying in this stage as it’s most profitable
• Decline: Demands of product slowly decrease. Comapnies can either stop selling product or too create a new line of products to sell to replace the old one.