Lesson 13 - The Marketing mix : Product

Question 1

Define the marketing mix

Answer 1

The marketing mix is a term which is used to describe all the activities which go into the marketing of a product or service

Question 2

What are the 4 Ps of marketing mix

Answer 2

Product
Price
Place
Promotion

Question 3

What are the 4 types of Products

Answer 3

• Consumer goods : Goods consumed by people
• Consumer services: Services produced for people
• Producer goods : Goods produced for other people
• Producer services : Services produced to help other businesses

Question 4

What are the 3 benefits when Developing new products

Answer 4

• Unique Selling point will mean the business will be first into the market with the new product
• It allows the business to expand into new existing markets
• It allows the business to expand into new markets

Question 5

What are the 3 benefits when Developing new products

Answer 5

• Lack of sales if the target market is wrong
• The costs of carrying out market research and analyzing finding
• Loss of company image if the new product fails to meet customer needs

Question 6

Define the Brand name and Brand Loyalty

Answer 6

Brand image : Is the Unique name which distinguishes a product from other products in the market.

Brand loyalty : Is when consumers keep on buying a product over and over again instead of choosing a competitor’s product.

Question 7

Define Brand Image

Answer 7

Brand Image is an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors brands

Question 8

What is packaging

Answer 8

Packaging is the physical container or wrapping for a product.

Question 9

List 2 functions of packaging

Answer 9

-It has to be suitable for the product to be put in
•Should give protection
•Has to allow the product to be used easily
•It has to be suitable for transporting the product
from the factory to the shops.
-It also used for promoting the product.
•Colour, shape is very important fpr the container to
appeal to consumers
•Expensive product will have a luxurious looking
container. A low cost may have basic simple
packaging

Question 10

Define the product life cycle

Answer 10

The product life cycle describes the stages a product will pass through from its introduction through its growth until it is mature and then finally its decline.

Question 11

List the product life cycle process part 1

Answer 11

1. First a product is Developed. Prototype is tested and market research is carried before product is launched
2. Introduction - The product is then introduced or launched. Sales will grow slowly at first because most consumers will not be aware of its existence.Informative advertising is used until the product becomes known. Price skimming may be used if the product is a new development and there are no competitors. No profits are made at this point as development costs have yet been recovered
3. Growth - Sales start to grow rapidly. The advertising is changed to persuasive advertising to encourage brand loyalty. Prices are reduced a little and competitor’s enter the market. Profits start to be made as development costs are recovered

Question 12

List the product life cycle process part 2

Answer 12

1. Maturity - Sales increase. Competition is now intense. Pricing strategies are changed now to competitive or promotional pricing. A lot of advertising is used to maintain sales growth and profit at their highest.
2. Saturation - Sale shave reached saturation point and stabilise at their highest point. Competition is high but there are no new competitors. Competitive pricing is used. A high and stable level of advertising is used. But profits start to fall. Prices have to be reduced to be competitive