Marketing Mix 11

Question 1

What is meant by the term ‘marketing’?

Answer 1

A management process of identifying, anticipating and satisfying customer’s wants profitably.

Question 2

What is meant by the term ‘brand’?

Answer 2

A named product that is seems as different.

Question 3

What is meant by the term ‘own brand’?

Answer 3

A product sold under the name of a retailer rather than the manufacturer.

Question 4

What is meant by the term ‘product mix’?

Answer 4

The number of products made by a business.

Question 5

What is meant by the term ‘product range’?

Answer 5

A group of similar products made by a business.

Question 6

What is meant by the term ‘product portfolio’?

Answer 6

Small businesses often sell one main product. As businesses expand they need to extend the range of products they sell. Therefore they are widening their product portfolio.

Question 7

What makes a brand iconic?

Answer 7

Advertising
Tradition
Recognised
Link to Britain

Question 8

What are the benefits of a business widening their portfolio?

Answer 8

Enables them to grow as a company therefore making more profit.
Less risk - spread the risk (have other products to fall back on if one fails etc).
Greater selection for customers.
Wider range to support original product.

Question 9

What are the drawbacks of a business widening their portfolio?

Answer 9

Lot more responsibility.
Quality decreases as not fully focused on one product.
Employ more staff therefore higher costs.
Poor publicity on one product can impact others.
High costs to keep developing products.
Product may fail if insufficient amount of market research done.

Question 10

What is meant by the term ‘product life cycle’?

Answer 10

A model showing the lifespan of a product’s sales from launch to being taken off the market.

Question 11

Describe a product life cycle graph.

Answer 11

The y axis is titles ‘sales’ and the x axis is labelled ‘time’. Below (0,0), there is a negative on both sales and time, which is the section for ‘Research and Development’. Then, there is a gradual incline on the line as the product enters its ‘Intro’ stage. Then, the line steepens as the product gets into its ‘Growth’ stage. When the graph/product reaches its peak number of sales, it is in its ‘Maturity and Saturation’ stage. When the number of sales begins to decline, the product enters its ‘Decline’ stage. Part of the way through the decline, the sales goes up again, as a product goes into its ‘Extension Strategy’ stage.

Question 12

Describe the number of sales through each of a product’s life cycle stages.

Answer 12

Research and Development: None.
Introduction: Low.
Growth: More, increasing.
Maturity and Saturation: Lots, high.
Decline: Less, decreasing.

Question 13

Describe the product through each of a product’s lifecycle stages.

Answer 13

Research and Development: Innovative new design.
Introduction: New, unique. 
Growth: New, unique. 
Maturity and Saturation: New, unique. 
Decline: Adapt, develop --> extension.

Question 14

Describe the promotion through each of a product’s lifecycle stages.

Answer 14

Research and Development: n/a.
Introduction: Lots, high.
Growth: Lots, high. 
Maturity and Saturation: Not as much, reduced. 
Decline: None.

Question 15

Describe the distribution through each of a product’s lifecycle stages.

Answer 15

Research and Development: n/a.
Introduction: High.
Growth: High.
Maturity and Saturation: High.
Decline: Less, decreasing.

Question 16

Describe the price through each of a product’s lifecycle stages.

Answer 16

Research and Development: n/a.
Introduction: High.
Growth: High.
Maturity and Saturation: High.
Decline: Decreasing, low.

Question 17

Describe the profit through each of a product’s lifecycle stages.

Answer 17

Research and Development: Less, negative.
Introduction: Breaking even/loss.
Growth: More, positive.
Maturity and Saturation: Lots, positive, high.
Decline: Decreasing profit.

Question 18

What is meant by the term ‘price’?

Answer 18

The amount charged to a consumer for a good or service.

Question 19

What are the factors influencing the price set?

Answer 19

Quality of the product. 
Target market. 
Manufacturing costs. 
Originality of the product --> USP.
Brand reputation.
Competitors. 
Location.
Innovation.
Profit you want.
Stage of product life cycle.

Question 20

What is meant by the term ‘advertising’?

Answer 20

A method of promotion to make people more aware of your business through putting adverts in places for people to see so they know about your business.

Question 21

What are the advantages of advertising?

Answer 21

Seen by lots of people.

Seen lots of times so message is conveyed effectively.

Question 22

What are the disadvantages of advertising?

Answer 22

Not individually targeted, very general.

Expensive.

Question 23

What is meant by the term ‘sales promotion’?

Answer 23

The process of persuading a potential customer to buy the product eg loyalty cars, vouchers/coupons, gifts.

Question 24

What are the advantages of sales promotion?

Answer 24

Strongly encourages people to try product & potentially switch brand.
Increases sales quickly, get a quick boost in sales.

Question 25

What are the disadvantages of sales promotion?

Answer 25

Can damage brand image.
Only effective of the short term.
Customers may effect further promotions.
Lowers profits.

Question 26

What is meant by the term ‘public relations’?

Answer 26

The way in which a company manages their relationship with different parts of the public.

Question 27

What are the advantages of public relations?

Answer 27

Gains credibility & trust in the company.
Creates a good brand image.
Long lasting effect.

Question 28

What are the disadvantages of public relations?

Answer 28

Message can be twisted, particularly by the media.

No guarantee the message will reach the target market.

Question 29

What is meant by the term ‘personal selling’?

Answer 29

Where businesses use people to sell the product after meeting face-to-face with the customer.

Question 30

What are the advantages of personal selling?

Answer 30

Personal, adaptable.
High customer attention.
Persuasive.
Increases customer relations.

Question 31

What are the disadvantages of personal selling?

Answer 31

Labour intensive.
Only reaches a limited number of customers.
Can be expensive.

Question 32

What are the factors influencing promotion method chosen by a business?

Answer 32

Cost.
Target audience.
Method of communication.

Question 33

what is meant by the term ‘channels of distribution’?

Answer 33

The way the product gets to the customer from the producer.

Question 34

Describe the traditional channel of distribution. Give examples of things usually taking this channel.

Answer 34

Producer–>wholesaler–>retailer–>customer.

Sweets, corner shops, drinks.

Question 35

Describe the modern channel of distribution. Give examples of things usually taking this channel.

Answer 35

Producer–>retailer–>customer.

Clothing.

Question 36

Describe the direct channel of distribution. Give examples of things usually taking this channel.

Answer 36

Producer–>customer.

Tailored clothing, bakery.

Question 37

What are this advantages and disadvantages of the traditional channel of distribution?

Answer 37

+easier to sell the product, only have to sell to the wholesaler.
-less profit margin, have to sell for cheaper (as sold in bulk).

Question 38

What are the advantages of the modern channel of distribution?

Answer 38

+higher profit margins, as can sell for higher prices.

Question 39

What are the advantages and disadvantages of the direct channel of distribution?

Answer 39

+very high profit margins.

-a lot more work yourself, make product & find customers.

Question 40

What are the factors affecting which channel of distribution to use?

Answer 40

Convenience for customers.
Distance from customers.
Cost of holding stock.
Likelihood of customer access online.
Amount of control.
Product (eg chewing gum vs A&F)