Marketing

Question 1

Advantages of packaging.

Answer 1

· Protects the product during transport

· Makes the product more appealing to the customer

· Allows the customer to easily access the product.

Question 2

Advantages of branding.

Answer 2

· Brand is easily recognised as the logo/design used helps identify it. This could mean that customers may buy more as they are familiar with the product.

· Can charge higher prices for a branded good as customers are willing to pay more for that particular brand over what they see as inferior brands.

· Easier to launch new products because once a customer is loyal to a brand, new products under that brand will be looked at in the same way.

Question 3

Factors affecting the location of the business.

Answer 3

Parking facilities - Customers need easy access to the business otherwise they may go elsewhere.

Customers - A business may need to locate near to where the customers are in order to meet their needs.

Competition - A business could locate further away to avoid competitors or it may choose to locate nearby to increase their share of the market

Question 4

Disadvantages of branding.

Answer 4

· One fault with a product may affect the image of the whole product range and customers may stop buying and go elsewhere.

· Brands can be copied and fake products can be produced and sold to try to give the impression they are the real item.

· It is time-consuming and expensive for a business to establish a brand which impacts upon profitability

Question 5

Disadvantages of packaging.

Answer 5

Disadvantages of packaging.

· Businesses are legally required to print information on packaging, such as ingredients, weight, etc.

· Packaging causes environmental problems.

Question 6

Factors when setting the price of a product.

Answer 6

Cost of production - This means the cost of making the product will be covered meaning there will be less chance of a loss.

Competitors’ prices - This means that the product will be in line with what competitors are charging.

Level of profit organisation wishes to make. - This means the business will be able to reach the objective of making a profit.

Level of promotion/advertising carried out. - This means the cost of advertising will be included in the price of the product.