marketing mix

Question 1

what are the axis for Boston Matrix

Answer 1

market share and market growth

Question 2

what does distribution channel one include

Answer 2

producer-> wholesaler-> retailer->consumer

Question 3

what does distribution channel two include

Answer 3

producer-> retailer->consumer

Question 4

what does distribution channel one include

Answer 4

producer->consumer

Question 5

what are the 4 factors that businesses need to consider before setting up a store

Answer 5

1. cost (rent)
2. coverage
3. convenience to consumers
4. control of the market

Question 6

how can a business benefit by selling with a retailer

Answer 6

1. may sell more products as they use a reliable brand to sell their new product
2. exclusivity deals may be signed to gain further market share over competitors

Question 7

which type of industry will especially benefit from selling with a retailer

Answer 7

1. a firm selling food
2. a firm selling in an unknown market abroad
3. luxury goods selling through Selfridges and harrods

Question 8

what are 2 negatives of using longer distribution channels

Answer 8

1. more delivery cost

2. the producer earns less profit as it may have to sell the product to the retailer at a reduced cost

Question 9

what is above the line marketing

advertising

Answer 9

using paid media outlet to inform consumers about a businesses product
(tv advertising mass appeal)

Question 10

what is below the line marketing

Answer 10

advertisement that doesn’t include a paid media outlet

Question 11

what’s a negative of advertising on tv

Answer 11

1. less targeted

2. very expensive

Question 12

3 examples of below the line marketing

Answer 12

1. targeted search engine marketing
2. direct mail
3. sponsorship

Question 13

penetration pricing

Answer 13

selling at a low price compared to competition and raising the price overtime as consumers develop brand loyalty

Question 14

price skimming

Answer 14

selling at a high price at release then lowering the price overtime as product to target the markets where demand is less inelastic

Question 15

when is penetration pricing necessary

Answer 15

1. when the market has high brand loyalty to existing brands
2. if demand for product is elastic
3. saturated market

Question 16

when is price skimming necessary

Answer 16

when a business with high brand loyalty is releasing a new product
eg ps5

Question 17

loss leadership

Answer 17

selling a product below cost to encourage purchase of other goods
eg Nike selling cheaper jumpers but more expensive joggers

Question 18

psycological pricing

Answer 18

making product appear cheap by selling at a price ending in 99

Question 19

discrimination pricing

Answer 19

selling the same product at different prices in different markets

Question 20

what are the different stages of the product lifecycle

Answer 20

1. R+D
2. introduction
3. growth
4. maturity
5. decline

Question 21

what is a product with a high market share and high market growth called

Answer 21

star

Question 22

what is a product with a high market share or a low market growth

Answer 22

cash cow

Question 23

what is a product with a low market share or a low market growth

Answer 23

dogs

Question 24

what is a product with a low market share or a high market growth

Answer 24

question marks

Question 25

why may a question mark product be problematic

Answer 25

heeds lots of promotion to benefit from growing market share

Question 26

why do we want a cash cow

Answer 26

revenue can be used to innovate other products and develop a wider product portfolio

Question 27

how does supplier power effect new entrants

porters 5 forces

Answer 27

if a the supplier has little number of substitutes they become very powerful. They have pricing power making it expensive to operate

Question 28

how does buyer power effect new entrants

porters 5 forces

Answer 28

if customers are only willing to buy from one firm it may be hard for new entrants to attract sales

Question 29

how to overcome supplier power

Answer 29

1. merger

2. economies of scale (making the supplier more reliant on the firm)

Question 30

how to overcome buyer power

Answer 30

1. differentiating products

Question 31

how can a business improve entry threat

Answer 31

1. copyrights

2. economies of scale

Question 32

Ansof matrix

Answer 32

a model which determines which growth strategy carries the most risk

Question 33

draw the ansof matrix

Answer 33

1. market penetration
2. market and product development
3. differentiation

Question 34

Why may smaller businesses benefit from using the ansof matrix

Answer 34

it is important for smaller businesses to assess their risk as a failure in investment may cause the business failure especially if a loan is taken out

Question 35

what is market development

Answer 35

1. selling in international market

2. different pricing policies

Question 36

when may market development be beneficial

Answer 36

1. when there is a lot of competition in domestic market

2. when there is high demand in another market

Question 37

what is product development

Answer 37

developing new products or features but selling at the same price

Question 38

what is diversification

Answer 38

selling a new product in a new market

Question 39

problems with diversification

Answer 39

1. little existing experience
2. little economies of scale
3. lots of investment required

Question 40

Draw porters generic strategy

Answer 40

nice

Question 41

What is porters generic strategy

Answer 41

a tool to help businesses adopt a position in the market to gain sales over consumer

Question 42

problems with selling with a retailer

Answer 42

1. unsure on how the product is going to priced
2. no control on marketing
3. may be sold directly next to competition