Management of Marketing

Question 1

Product Orientation?

Answer 1

Releasing a product into the market without research
No real Competition
Often new inventions

Question 2

ADV/DISAD of product orientation

Answer 2

+ focus on quality of product
- needs of market are ignored
- changes in taste and fashion will not be accounted for

Question 3

customer orientation?

Answer 3

product released into market after research
competition in market

Question 4

ADV/ DISAD of customer orientation?

Answer 4

+ensures product will actually be sold
+ more asap tree d to customers wants
- customer search is expensive

Question 5

mass marketing?

Answer 5

sold to entire market
no personalisation
same product appeals to everyone
Lots of competition
eg. milk, petrol

Question 6

Niche marketing

Answer 6

Gap in the market is found and product is made to appeal to that market
Little to no competition
eg. handmade products

Question 7

Desk research?

Answer 7

research that has already been gathered for a different purpose
eg. books, articles, figures etc

Question 8

ADV/ DISAD of desk research

Answer 8

+ doesn’t cost a lot of money
+ quick and easy to access
- available to competitors
- could contain bias
- may be out of date

Question 9

Field Research?

Answer 9

Not previously gathered, new research

Question 10

ADV/ DISAD of field research?

Answer 10

+ not available to competitors
+ reliable as source is known
- Time consuming to collect
- Expensive

Question 11

Sampling techniques?

Answer 11

Random: everyone has equal chance of being chosen
Quota: population grouped and then proportionally sampled
Stratified:

Question 12

Product line portfolio?

Answer 12

spin off product is made from successful product eg. Frozen

Question 13

ADV/ DISAD of product line portfolio

Answer 13

+ risk of failure is spread across several products
+ customer base increases as wider variety of products will cater to different groups of customers

• product with one product can effect reputation of other products
• business may have to invest heavily in machinery that can produce wide variety of products

Question 14

Diverse product portfolio?

Answer 14

allows businesses to “test the waters” in different markets separate from original business

Question 15

ADV/DISAD of diverse product portfolio?

Answer 15

+ selling variety of products can increase customers
+ Spreads risk of failure across products
- Advertising costs high to advertise all products

Question 16

Product Life Cycle Stages?

Answer 16

Introduction
Growth
Maturity
Saturation
Decline

Question 17

Introduction stage?

Answer 17

High advertising costs
Low profit
Making a loss

Question 18

Growth stage?

Answer 18

Advertising maintained
Consumers become aware of product
Sales become rapid

Question 19

Maturity Stage?

Answer 19

sales more slow and peak
reduced advertising costs
most profitable

Question 20

Saturation stage?

Answer 20

Potential new markets exploited
Advertising costs high
Competition fierce

Question 21

Decline Stage?

Answer 21

Sales fall
New competitors products enter market
Profits fall

Question 22

Extension strategies?

Answer 22

Providing variants eg. mars: yoghurt, fun sized, ice cream

Changing packaging

Changing the product: size, taste

Question 23

Long term pricing strategies?

Answer 23

Low price
Competitive Pricing
High Price
Physiological Pricing

Question 24

Low price?

Answer 24

Low price is set to undercut competitors

Question 25

Competitive Pricing?

Answer 25

Price is set at similar to competitors, business competes in other ways such as providing a better service

Question 26

High Price?

Answer 26

Product is set at a high price as customers link high priced with better quality products

Question 27

Psychological Pricing?

Answer 27

Price is set to trick customers into thinking it’s cheaper than it actually is eg. 99p instead of £1

Question 28

Medium Term Pricing Strategies?

Answer 28

Price Discrimination Cost plus

Question 29

Price discrimination?

Answer 29

Product is charged at different prices depending on where it is being sold

Question 30

Cost Plus

Answer 30

Price is set with an additional charge to ensure a profit is made

Question 31

Short Term Pricing Strategies?

Answer 31

Price Skimming Penetration Pricing Destroyer Pricing Promotional Pricing Loss Leader Demand Orientated Pricing

Question 32

Price Skimming?

Answer 32

Price is set at a high price when released into market as little to no competition, then reduced when competitors enter the market

Question 33

Price Penetration?

Answer 33

Price is set quite low when entering the market until the product becomes known then the price is increased

Question 34

Destroyer Pricing

Answer 34

Price is set which make it impossible for competitors to compete with lower pricing

Question 35

Promotional Pricing?

Answer 35

Product is reduced for a short period of time to encourage sales of less popular products eg. black friday

Question 36

Loss Leader?

Answer 36

Price of Product is set low in the hope customers will buy expensive add ons

Question 37

Demand Orientated Pricing?

Answer 37

Pricing differs dependent on the demand of the product. higher demand = price increase

Question 38

Above the Line promotion?

Answer 38

Persuasive Corporate Informative Generic

Question 39

Below the Line - Into the Pipeline

Answer 39

Loaders Bulk discounts Extended Credit

Question 40

Below the Line - Out of the Pipeline

Answer 40

Free samples Discounts Percentage Extra - 50% free In store tasters

Question 41

ADV of celebrity endorsement

Answer 41

Higher price can be charged due to link with celebrity Images of celebrity with product can create a visual connection encouraging sales

Question 42

DISAD of celebrity endorsement

Answer 42

Very expensive to maintain celebrity If celebrity gets bad reputation product image can be tarnished