Marketing

Question 0

What does the product life cycle describe?

Answer 0

The stages a product goes through from the beginning where it is first thought of right until it is removed from the market

Question 1

What is marketing?

Answer 1

Understanding your customers needs and adapting your marketing mix to give them what they want

Question 2

What are the 4 main stages of the product life cycle?

Answer 2

Introduction
Growth
Maturity
Decline

Question 3

Why do branded goods enjoy continuous growth?

Answer 3

The product is constantly bring improved and advertised and maintains a strong brand loyalty

Question 4

Where, on the product life cycle, would you see negative cash flow?

Answer 4

Development and introduction

Question 5

What is a key problem with the product life cycle?

Answer 5

Few products finish the product life cycle. The length of each stage differs depending on the product, some even go straight from introduction to decline

Question 6

What makes a successful product?

Answer 6

Finding a gap in the market and creating a product that fits in that gap
Appealing
Reliability

Question 7

What is a product range?

Answer 7

Many companies we know produce a range of products to reach different segments of the market

Question 8

What is an example of a product range?

Answer 8

Apple: ipad-workers, kids
iPhone-everyone
iMac-workers

Question 9

What is the Boston matrix?

Answer 9

A process used by a company to know where each of their products are in terms of market share and growth.

Question 10

What are the 4 categories in the Boston matrix?

Answer 10

Star
Cash cow
Question mark
Dog

Question 11

What is the star?

Answer 11

High market share, high market growth

Question 12

What is the cash cow?

Answer 12

Low market growth, high market share

Question 13

What is he question mark?

Answer 13

High market growth, low market share

Question 14

What is the dog?

Answer 14

Low market share, low market growth

Question 15

What is the strategy for the question mark?

Answer 15

Build market share by using the 4 p’s

Question 16

What is the strategy for cows?

Answer 16

Invest just enough to keep the product in its current position
‘Milk’ then for cash to spend on other products

Question 17

What is the strategy for stars?

Answer 17

Reduce investments and promotions and raise prices in order to maximise the short-term cash flows and profits from the products

Question 18

What is the strategy for dogs?

Answer 18

Products can phase out or sell the product in order to use the resources elsewhere

Question 19

What is market share?

Answer 19

The percentage share of the market at any time. Business owners can control this

Question 20

What is market growth?

Answer 20

Value of sales that changes in a minute. Change in the whole market over time

Question 21

What is cost plus pricing?

Answer 21

Cost of making then adding a price onto it, making a profit

Question 22

What is competitor pricing?

Answer 22

Look what competitors are charging and either match it or make your product cheaper

Question 23

What is penetration pricing?

Answer 23

Go into the market at a low price and then rise prices as you’re going through the market

Question 24

What is an example of penetration pricing?

Answer 24

Magazine collectibles

Question 25

What is premium pricing?

Answer 25

Charge high prices to show that it's expensive and has high quality

Question 26

What is promotional pricing?

Answer 26

Sales over short periods of time in order to get rid of stock

Question 27

What is psychological pricing?

Answer 27

Prices at £3999 look better than £4000 making you think you are spending less

Question 28

What is loss leader?

Answer 28

Well something at a loss to get people to buy other things

Question 29

What is deferential or differentiated?

Answer 29

Charge different target audiences different prices for identical products

Question 30

What are some examples of the role of packaging?

Answer 30

``` To be attractive Appeal to target audience Sanitation Informative To hold the product ```

Question 31

What are the 3 channels of distribution?

Answer 31

Traditional Modern Direct

Question 32

Where does the traditional channel go?

Answer 32

Producer Wholesaler Retailer Consumer

Question 33

Where does the modern channel go?

Answer 33

Producer Retailer Consumer

Question 34

Where does the direct channel go?

Answer 34

Producer | Consumer

Question 35

What is an example of a business which used the direct route?

Answer 35

Small furniture shops who make the products

Question 36

What is a promotion?

Answer 36

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

Question 37

What does promotion have to depend on?

Answer 37

Competitiveness in the market The availability of the product Stage of the product life cycle How different is the product to the competition

Question 38

What are the two types of promotions?

Answer 38

Above the line | Below the line

Question 39

What is above the line promotion?

Answer 39

Promotion that everyone will see and is mainly media based e.g. Tv adverts

Question 40

What is below the line promotion?

Answer 40

Aimed at certain people and it not media based normally e.g. Merchandising

Question 41

What is a brand?

Answer 41

A sign, symbol, term, design, or any other feature that allows consumers to identify the goods and services from competitors

Question 42

What are 5 reasons for branding?

Answer 42

``` Help make customer choice easier Customer loyalty Differentiate the product Make demand less elastic Increase the value of the company ```

Question 43

What does make demand less elastic mean?

Answer 43

Is price increases, demand stays the same

Question 44

How has the internet impacted on prices of products?

Answer 44

Customers can easily look and see which are providing the best deal- don't have to drive to every shop Businesses can see what others are charging

Question 45

How has the Internet impacted on product?

Answer 45

Made shopping easier so products could stay in maturity longer and away from decline- products shown in detail so customers know exactly what they're getting Customers can research product in detail and can do it quicker and this is appealing-stay in maturity

Question 46

How has the Internet impacted on place?

Answer 46

Allowing businesses to sell online-good for those who live far away or those who have trouble getting around Distribution channels can include warehouses from places without a shop

Question 47

How has the Internet impacted on promotion?

Answer 47

Advertise online-above the line promotion Online used daily so lots of people will see the promotion online Increase the knowledge of the business and increase sales

Question 48

What is international marketing?

Answer 48

Involves the firm in making one or more marketing mix decisions across national boundaries

Question 49

What are some reasons for marketing products internationally?

Answer 49

``` Increase profile Increase brand awareness Increase market share and sales Economies or scale Economic advantages-tax Gap in the market ```

Question 50

What are the 6 main international marketing problems? E C T D L C

Answer 50

``` Economic Cultural Technological Distribution Legal Competitors ```

Question 51

What are some economical features that can cause problems for international marketing? And how do they impact the marketing mix?3

Answer 51

Exchange rates- change price of products Tax how wealthy the country is

Question 52

What are some cultural features that can cause problems for international marketing? And how do they impact the marketing mix? 3

Answer 52

Language barrier- product name Work ethics- promotions Religious issues- products

Question 53

What are some technological features that can cause problems for international marketing? And how do they impact the marketing mix?3

Answer 53

Some countries aren't as developed (no internet)-no promotions Facilities available- no buying online Too high technological developed

Question 54

What are some distribution features that can cause problems for international marketing? And how do they impact the marketing mix?3

Answer 54

Online distribution- place sold Transport - unreliable, quality Infrastructure

Question 55

What are some legal features that can cause problems for international marketing? And how do they impact the marketing mix?4

Answer 55

Regulations Employing people Tax Alcohol- countries don't allow it

Question 56

What are some competitor features that can cause problems for international marketing? And how do they impact the marketing mix?3

Answer 56

Amount of competitors-promotions Loyalty of customers- products Knowing the market- price

Question 57

What 4 factors influence the choice of distribution channel?

Answer 57

The cost The market The product The company

Question 58

How does the market influence the choice of distribution channel? 3

Answer 58

Is it a wide market? Competition Or a small geographically confined market?

Question 59

How does the cost influence the choice of distribution channel? 1

Answer 59

The longer the chain, the higher the price

Question 60

How does the product influence the choice of distribution channel? 4

Answer 60

Depends what the product is, is what decides the channel Heavy? Made to customers individual needs? Easily broken?

Question 61

How does the company influence the choice of distribution channel? 2

Answer 61

Does it have its own transport? | does it have lots of outlets?