Marketing

Question 1

Advantages of Branding

Answer 1

• Products are easily identifiable
• brand loyalty is built up
• premium pricing can occur
• High quality is usually associated
• A family of products can be created

Question 2

Disadvantages of branding

Answer 2

• Brands take time to build up reputation and quality
• Advertising and promotion can be expensive
• negative press can tarnish the entire family
• Cheap imitations may flood the market

Question 3

Advantages of own brands

Answer 3

• Attract more customers and sales within the store
• Producer will have guaranteed sales
• Own labels require little advertising as customers are usually regular shoppers
• The retailer does not need to produce the own brand products, they can buy them
• Own brands are usually cheaper and therefore have an advantage over trusted brands

Question 4

Disadvantages of own brands

Answer 4

• Some customers believe own brands are of lower quality than established brands
• Whole brands can be tarnished over one bad product which may ruin the reputation over night

Question 5

Product Orientation

Answer 5

When a business focuses on the production process and seeks to make goods that are superior

PRODUCT ORIENTATION GETS THE PRODUCT RIGHT

Question 6

Market Orientation

Answer 6

Market orientation starts with the consumer and ends with the consumer. Used market research to make a product

MARKET ORIENTATION GETS THE RIGHT PRODUCT

Question 7

Stages of the product life cycle

Answer 7

DEVELOPMENT

INTRODUCTION

GROWTH

MATURITY

SATURATION

DECLINE

Question 8

What are the extension strategies for the product lifecycle?

Answer 8

INTRODUCE NEW VARIETIES OF THE PRODUCT

FIND NEW MARKETS FOR EXISTING PRODUCTS

CHANGE THE PRICE

UPDATE THE PRODUCT

CHANGE THE CHANNEL OF DISTRIBUTION

MODIFY THE PACKAGING

USE A NEW ADVERTISING CAMPAIGN

Question 9

What is market segmentation

Answer 9

Market segmentation involves using market research information to split the consumers in your market into SEPARATE and IDENTIFIABLE groups with specific wants.

Question 10

Advantages of a product portfolio

Answer 10

> Having multiple markets massively increases potential sales

> Fall in demand for one product can be compensated for by income from other so there is less overall risk of failure.

> The organisation have an easier job launching new products as income from other products help subside it.

Question 11

Disadvantages of product portfolio

Answer 11

> The organisation must decide which products to invest in across the portfolio

> Some products may use investments up and never take off

> One products bad reputation could have a knock on effect on the whole organisation’s portfolio potentially decreasing profit across the board.