Key terms 1.3-Marketing Mix and Strategy

Question 1

what is design mix?

Answer 1

the range of features that are important when designing a product

Question 2

what is consumer durables?

Answer 2

good that can be used repeatedly over a period of time, such as cars and household appliances

Question 3

what is product design?

Answer 3

the process of creating a new product or service

Question 4

what is ergonomics?

Answer 4

the study of how people interact with their environment and the equipment they use- often in the workplace

Question 5

what is ethical sourcing?

Answer 5

usi ng materials, components and services from suppliers that respect the environment, treat their workforce and generally trade with integrity

Question 6

what is recycling?

Answer 6

making use of materials that have been discarded as waste

Question 7

what is resource depletion?

Answer 7

the using up of natural sources

Question 8

what is waste minimisation?

Answer 8

reducing the quantity of resources that are discarded in the production process

Question 9

what is marketing mix?

Answer 9

the elements of a business’s marketing that are designed to meet the needs of customers (4Ps)

Question 10

what is promotion?

Answer 10

an attempt to obtain and retain customers by drawing their attention to a firm or its products

Question 11

what is advertising?

Answer 11

communication between a business and its customers where images are placed in the media to encourage the purchase of products

Question 12

what is viral marketing?

Answer 12

any strategy that encourages people to pass on messages to others about a product or a business electronically

Question 13

what is above the line promotion?

Answer 13

placing adverts using the media

Question 14

what is below the line promotion?

Answer 14

any promotion that does not involve using the media

Question 15

what is emotional branding?

Answer 15

the practice of using the emotions of a consumer to build a brand

Question 16

what is a generic brand?

Answer 16

products that only contain the name of the product category rather than that company or product name

Question 17

what is a manufacturing brand?

Answer 17

brands created by the producers of goods or services

Question 18

what is own label, distributor or private brands?

Answer 18

products that are manufactured for wholesalers or retailers by other businesses

Question 19

what is point of sale?

Answer 19

any point where a consumer buys a product

Question 20

what is public relations?

Answer 20

an organisation’s attempt to communicate with interested parties

Question 21

what is sales promotion?

Answer 21

methods of promoting products in the short term to boost sales

Question 22

what is sponsorship?

Answer 22

making a financial contribution to an event in return for publicity

Question 23

what is product life cycle?

Answer 23

shows the different stages in the life of a product and the sales that can be expected at each stage

Question 24

what is extension strategies?

Answer 24

methods used to prolong the life of a product

Question 25

what is unit costs?

Answer 25

the same as average cost (total cost/output)

Question 26

what is mark up?

Answer 26

the percentage added to unit cost that makes a profit for a business when setting the price

Question 27

what is pricing strategy?

Answer 27

the pricing strategies or methods used by a business when deciding what to charge for its products

Question 28

what is competitive pricing?

Answer 28

pricing strategies based on the prices charged by rivals

Question 29

what is cost plus pricing?

Answer 29

adding a percentage (mark up) to the costs of producing a product to get the price

Question 30

what is penetration pricing?

Answer 30

setting a low price when launching a new product in order to get established in the market

Question 31

what is predatory/ destroyer pricing?

Answer 31

setting a low price forcing rivals out of business

Question 32

what is psychological pricing?

Answer 32

setting the price slightly below a round figure

Question 33

what is price skimming?

Answer 33

setting a high price initially and then lowering it later

Question 34

what is distribution?

Answer 34

the delivery of goods from the producer to the sonsumer

Question 35

what is distribution channel?

Answer 35

the route taken by a product from the producer to the customer

Question 36

what is intermediaries?

Answer 36

links between the producer and the consumer

Question 37

what is an agent?

Answer 37

an intermediary that brings together buyers and sellers

Question 38

what is retailer?

Answer 38

a business that buys goods from manufacturers and sells them in small quantities to consumers

Question 39

what is a wholesaler?

Answer 39

a business that buys goods from manufacturers and sells them in smaller quantities to retailers

Question 40

what is breaking bulk?

Answer 40

dividing a large quantity of goods received from a supplier before selling on in smaller quantities to customers

Question 41

what is direct selling?

Answer 41

producers selling there products directly to consumers

Question 42

what is e-commerce?

Answer 42

the use of electronic systems to sell goods and services

Question 43

what is marketing strategy?

Answer 43

a set of plans that aim to achieve a specific marketing objective

Question 44

what is the boston matrix?

Answer 44

a 2x2 matrix model that analyses a product portfolio according tot he growth rate of the market and the relative market share of products within the market

Question 45

what is product lines?

Answer 45

a group of products that are very similar

Question 46

what is product portfolio?

Answer 46

the collection of products a business is currently marketing