Marketing

Question 1

describe the advantages and disadvantages of product led strategies

Answer 1

-businesses can focus on the quality of their products/take time in production
-the business can invest in technology and apply it to their products

disadvantages
-the needs of the market is completly ignored
-any changes in style/fashion is not accounted for

Question 2

describe the advantages and disadvantages of market led strategies

Answer 2

-the business will be confident in its products launch as it knows the market inside and out
-strong position to deal with any competition as it will know how the market operates

disadvantages
-market-led research is incredibly expensive
-future can be unpredictable meaning by nature the business has a high chance of failing

Question 3

what is field and desk research

Answer 3

Field research is carrying out information gathering using tactics such as surveys and questionaires
Desk research is information that has already been found such as in a book

Question 4

Different types of field and desk research

Answer 4

Field research
-Questionaires,surveys,interviews,product testing
Desk research
websites,books journels,

Question 5

advantages and disadvantages of desk Research

Answer 5

Desk research
Advantages
-Decisions can be made quickly as information is already supplied
-easy to obtain as research is already there
disadvantages
-Information may be outdated/not been researched recently leading to poor decisions
-information could be biased

Question 6

Advantages and disadvantages of Field research

Answer 6

Field research
-more up to date
-gathered for specific purpose/will be relevant due to being gathered in a specific niche

Disadvantages
-can be expensive/money wont be used elsewhere
-time consuming/slow

Question 7

What is Random and Quota sampling

Answer 7

Random sampling is when a business takes random individuals and for example gives them a survey using a computer or electoral register

Quota sampling is when people are selected using characteristics to answer questions

Question 8

Advantages and disadvantages of random sampling

Answer 8

advantages
-Random sampling can not be biased meaning all the information is random
-saves time as the business doesn’t need to select individuals

Disadvantages
-could completely not represent the market when choosing individuals
-could over represent certain groups in the characteristics skewing results

Question 9

Quota sampling

Answer 9

-Quick and easy method as lists are already made up

disadvantage
-Research bias could happen as each group isnt random

Question 10

what are all the stages of the product life cycle

Answer 10

-Development
-Introduction
-Growth
-maturity
-Saturation
-Decline

Question 11

What would happen to a product as it moves through the cycle

Answer 11

R&D Finance would be raised and there would be no loss/profit as the product hasnt been released
Introduction
-Very low to no profits would be made here as the product is getting heavily promoted
Growth
-Profits would start to increase as customers are informed about the product
Maturity
-profits would peek as customers are aware of the product as its established
Decline
-The product sales decline as the product becomes obsolete on the market

Question 12

Product portfolio Advantages and disadvantages

Answer 12

-lower risk of failure as products are spread out onto different markets
-Increased customer loyalty if a customer believes one product is good they may go for another product by the same company
-higher profits as the products reach a variety of different markets
-easier to launch new products as the brand is known in many different markets

-If the brand perhaps gets a bad reputation due to selling a bad product it may impact sales on all departments

Question 13

Disadvantages of Product portfolio

Answer 13

Higher costs of research and development as products need to be researched into different markets
-Bad publicity in one market or on the brand affects the brand in every market meaning potentially lower customer consumption/purchasing
-resources will be spread thin as one product may affect sales on all products

Question 14

Boston matrix layout

Answer 14

StarProblem child
Cashcow dog

Question 15

Describe Star and problem child

Answer 15

High growth large market share
Problem child
High growth,Low market share

Question 16

Describe cash cow and dog

Answer 16

Dog
low market share low growth
Cash cow
Low growth large market share

Question 17

What are all the Pricing strategies

Answer 17

-Cost plus
-Low price
-market/competitive pricing
-High/premium pricing
-Market skimming
-Destroyer pricing
-Penetration pricing
-Promotional pricing
-Loss leader
-Discriminatory pricing
-Psychological pricing

Question 18

Cost plus

Answer 18

A-profits are predictable,since your setting your markup price at a specific precentage
D-doesnt take into external factors

Question 19

Low price

Answer 19

A-Increased sales due to low cost
D-Diminish brand reputation low cost=low quality

Question 20

Market/competitive pricing

Answer 20

A-Maintain market share/portion attract customer who will pay slightly less
D-need to watch market super closely to see what competitors are doing

Question 21

Premium pricing

Answer 21

A-profit margins way higher charge more than manufacturing cost
D-only works if consumers see brand as high value

Question 22

Market skimming

Answer 22

A-hype around a product allows it be sold at a much higher price at the start of its product life cycle which can enable higher profts
D-high initial costs can put customers off

like Gucci

Question 23

Penetration pricing

Answer 23

A-Quickly get customers
D-not sustainable in the slightest

Question 24

Destroyer pricing

Answer 24

A-forces competitors out of market then prices can increase resulting in company having greater market share
D-Illegal/not aloud as it breaks business fair play rules and regulations

Question 25

promotional pricing

Answer 25

A-Sales are boosted due to low price
D-only works in short term resulting in profit margins eroding over time

Question 26

Loss leader

Answer 26

A-brings customers to the business in hopes they buy more i.e greater footfall/encourages repeated purchases
D-customer may only buy the loss leader resulting in lower profits

Question 27

Discriminatory pricing

Answer 27

A-selling the same product but in a different market segment resulting in higher product appeal in specific places
D-harder to budget for profits/sales revenue

Question 28

psychological pricing

Answer 28

A-sell more by slightly altering price
D-customer may not fall for the trick

Question 29

Sales promotion
Into the pipeline-pipeline-out of pipeline meaning

Answer 29

Into-Distribution system(manufacturer to wholesaler)
Out of pipeline-Encourages more sales(retailers-consumers

Question 30

Into pipeline tactics

Answer 30

since its manufacturer to wholesaler
deals such as 20crates for 5 free in order to encourage buying in bulk
promotional gifts i.e Alcohol

Question 31

out of pipeline tactics

Answer 31

BOGOF/loyalty schemes

Question 32

Channel distribution
what are some of the reasons for choosing different channels

Answer 32

-The Nature of the product i.e does it need to be freshed/cooled
-Available finance having own retail outlets carries additional costs use of wholesalers cuts costs
-Legal restrications-I.e medicine only sold in pharmacy
-reliability of wholesaler-consistent and fast if not could impact sales

Question 33

Methods of distribution

Answer 33

Car
Train
Air
boats

Question 34

advantages and disadvantages of car/road

Answer 34

A-Cheap method/direct delivery
D-carbon emissions/Road works could impact speed signifcantly

Question 35

Advantages and disadvantages of Rail

Answer 35

A-Transport a large amount of crates/freight
D-rail works could impact business speeds

Question 36

Air

Answer 36

A-global access
d-expensive

Question 37

Sea

Answer 37

A-large products can be sent around the world
D-Longer waiting time/takes ages

Question 38

Direct sellers/e-commerance Advantage and disadvantage(customer)

Answer 38

Advantage
-up 24/7
-customer reviews could leave positive reviews
Disadvantage
-requires internet
-could be fake sites/get scammed

Question 39

e-commerance (seller)
Advantages and disadvantages

Answer 39

advantage
-Available 24-7 sales at any time
-fairly inexpensive to set up
Disadvantage
-staff turnover i.e firing of staff can cause staff needing to be trained
-can be expensive and time consuming to make a website

Question 40

Explain the advantages of using an app to promote a product

Answer 40

-app can be used anywhere as its up 24-7
-allows customers worldwide to be targeted for promotion material
-information about products can be updated quickly and efficiently meaning customers are up to date constantly and instantly with produtcs