Marketing

Question 1

Product life cycle

Answer 1

A model showing the lifespan of a products sales from launch to being taken off the market

Question 2

Development

Answer 2

How much a product/business has been developed, changed or advanced

Question 3

Launch/introduction

Answer 3

The start of a product on the product lifestyle

Question 4

Growth

Answer 4

The starting of a product to grow/ growing and making itself up the product life cycle

Question 5

Maturity

Answer 5

Where a product has reached its highest increase on the product life cycle

Question 6

Saturation

Answer 6

At a point of saturation, they cannot grow anymore without developing or making changes to their business

Question 7

Decline

Answer 7

When a product starts to head for going off market (discontinued) and unless they develop the product they cannot move back up the life cycle

Question 8

Extension strategy

Answer 8

An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline

Question 9

Brand

Answer 9

A brand is a name, term, design, symbol, or other feature that distinguishes an organization or product from its rivals in the eyes of the customer. Brands are used in business, marketing, and advertising

Question 10

Product portfolio

Answer 10

Shows the range of products a company offers

Question 11

Pricing strategy

Answer 11

Competition 
Location
Quality
 Cost 
Brand 
Demand 
State of economy 
Supply
Target audience
Stage of product life cycle

Question 12

Psychological pricing

Answer 12

Used to make products appear cheaper by using fa: ‘£1.99’ instead of ‘£2.00’ to make the product seem cheaper to the consumer

Question 13

Price discrimination

Answer 13

First-degree price discrimination, alternatively known as perfect price discrimination, occurs when a firm charges a different price for every unit consumed. The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself.

Question 14

Cost plus pricing

Answer 14

Cost plus pricing is a cost-based method for setting the prices of goods and services. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage (to create a profit margin) in order to derive the price of the product.

Question 15

Price skimming

Answer 15

Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.

Question 16

Penetration pricing

Answer 16

Penetration pricing refers to a marketing strategy used by businesses to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to lure customers away from competitors.

Question 17

Completion based pricing

Answer 17

Pricing of a product/products depending on where competition have priced their products

Question 18

Promotional mix

Answer 18

The 4 p’s

Question 19

Informative advertising

Answer 19

Advertising that includes a lot of information about the business or product/ products that are sold to help build the business up and help it to grow

Question 20

Persuasive advertising

Answer 20

Advertising used to persuade customers into the business

Question 21

Above the line

Answer 21

Above The Line (ATL) advertising is where mass media is used to promote brands and reach out to the target consumers. These include conventional media as we know it, television and radio advertising, print as well as internet

Question 22

Below the line

Answer 22

Below-the-line advertising is an advertising strategy in which a product is promoted in mediums other than radio, television, billboards, print and film. Types of below-the-line advertising commonly include direct mail campaigns, trade shows and catalogs, and targeted search engine marketing.

Question 23

Sales promotions

Answer 23

The process of persuading a potential customer into the business

Question 24

Direct marketing

Answer 24

Where customers are communicating with the business through a variety of media

Question 25

Public relations

Answer 25

Help manage reputation of a business

Question 26

Channel of distribution

Answer 26

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.

Question 27

Retailers

Answer 27

Sells goods directly to customers consumers through many methods to grow product

Question 28

Wholesaler

Answer 28

Buys large amounts of products and sells in a warehouse. Aka Costco

Question 29

Telesales

Answer 29

Sales done over the phone

Question 30

Mail order

Answer 30

Orders made online or in store but delivered by mail

Question 31

Internet selling

Answer 31

Selling products over the Internet