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BUSINESS > MARKETING MIX > Flashcards

MARKETING MIX Flashcards

1
Q

(what are the 4’ps of marketing) what are the 4 elements of the marketing mix ?

A

PRODUCT
PLACE
PRICE
PROMOTION

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2
Q

what is the product in the 4’ps of marketing ?

A

this is the actual item (a good or service) that is produced by the business and then sold in a market

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3
Q

why is product important in the marketing mix?

A

product is important because it must be what the customer wants or they will not buy it. market research helps a business to identify what the customer wants.

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4
Q

what is the price in the 4’ps of marketing ?

A

price is how much money a business charges the customer to buy the product.

different pricing strategies are used to determine the price of a product .

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5
Q

why is price important in the 4p’s of marketing ?

A

price important because
the product must be a price that the customer will buy it at.

the price must not be too high compared to competition because customers will buy from them if it is. the price must reflect the quality of the product , but at the same time, allow the business to cover costs and make a profit.

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6
Q

what is place in the 4p’s of marketing ?

A

place is the way the business makes the product available to the customer and where the product is sold (the market)

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7
Q

why is place in the 4’ps of marketing important?

A

place is important because

the product must be accessible to the customer (i.e. they must be able to obtain it )

the product might be sold via different places including shops , websites , TV and through smart phone apps.

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8
Q

what is promotion in the 4p’s of marketing ?

A

promotion is how customers are told that the product exists and are encouraged in different ways to buy it. promotion is more than just advertising.

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9
Q

why is promotion important in the 4p’s of marketing ?

A

promotion is important because
the product must be promoted and advertised to customers so that they know it exists .

Different promotion methods are used to encourage customers to buy a product.

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10
Q

what is the product life cycle ?

A

the product life cycle is once a product has been launched onto the market, it has a life cycle. the product life cycle shows the different stages of the product life.

the four stages are

INTRODUCTION
GROWTH
MATURITY
DECLINE

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11
Q

what is branding?

A

a brand can be a logo , name symbol that is given to a group type of product. some businesses have their own brands to help separate them form other products . for example Tesco value and Tesco finest

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12
Q

what is product development ?

A

product development is something that happens to the product before it is made available in the market to the customers it has to go through development a number of activities take place during product development

which are

  • market research
  • ideas for the product
  • product model might be created (prototype)
  • test marketing
  • changes might be made in product
  • the method of production has to be decided
  • the price that will be charged for product
  • the place the product will be sold
    -the methods of the promotion that will be used
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13
Q

what are 2 risks that can happen developing a new product ?

A

product encloses low market demand
competition develops a better product

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14
Q

what is test marketing ?

A

Test marketing is a method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis

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15
Q

what are pricing strategies ?

A

premium, skimming, economy or value and penetration

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16
Q

what are the 4 stages of the product life cycle ?

A

introduction, growth, maturity, and decline.

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17
Q

what are 2 advantages of branding ?

A

It can help you build trust with customers, increase your market share, and drive sales. A strong brand can also improve your company’s overall value, attract top talent, and create a sense of unity among your employees.

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18
Q

what are 2 disadvantages of branding ?

A

Huge development costs. The biggest disadvantage of branding is that it involves huge cost because brands are not created overnight and companies have to spend huge sums on advertising and publicity. …
Limited quality flexibility. …
Changing the perception for the brand is hard.

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19
Q

at which stage is profit highest ?

A

The maturity stage of the product life cycle is the most profitable stage, the time when the costs of producing and marketing decline.

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20
Q

what types of market research is there ?

A

The main types of market research are primary research and secondary research.

Primary research includes focus groups, polls, and surveys. Secondary research includes academic articles, infographics, and white papers. Qualitative research gives insights into how customers feel and think.

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21
Q

why do businesses have branding ?

A

so that it is recognisable to customers

higher prices can sometimes be charged for branded products

this can help customers to distinguish a business form competitors

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22
Q

what is the product life cycle?

A

A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market. A product’s life cycle is usually broken down into four stages

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23
Q

what is growth ?

A

sales - rise quickly- lots of new consumers

costs - high - still lots of advertising

profits - increasing fast ( sales - cost )

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24
Q

what is maturity ?

A

sales - at the highest - established customer base

cost -low - little advertising

profits- at the peak ( sales-costs)

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25
Q

what is decline ?

A

sales - fall quickly - increased competition / consumers move away

costs - low - little advertising

profits - falling sharply

(sales - costs)

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26
Q

what is introduction ?

A
  • product is landed

sales- low - consumers don’t know it exists

costs - high - lots of advertising

profit - low or negative ( because it sales costs )

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27
Q

what is field research ?

A

field research is gathering new information by carrying out surveys, interviews and observations this gathers primary information

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28
Q

what is desk research ?

A

desk research is when looking at existing information, eg in newspapers, books and internet websites, this gathers secondary information.

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29
Q

what type of field research is there ?

A

face-to-face interview.
postal survey.
focus group.
hall test.
telephone interview.
online survey.
observation.

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30
Q

what type of desk research is there ?

A

sales figures.
newspapers.
websites.
government publications e.g. social trends.
commercial publications e.g. Keynote and Mintel reports.

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31
Q

disadvantages of desk research ?

A

because this research was carried out for a different purpose, it is not as reliable as field research and might not be as useful.

the research might have been carried out a long time ago and therefore the information is not relevant to todays business environment.

the information might be biased, which could lead to wrong or incomplete decisions being made.

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32
Q

disadvantages of field research ?

A

it can be expensive to carry out field research, which means the money cannot be spent on something else (eg buying a new machine)

it can take a long time to carry out field research , which could stop decisions being made quickly

people need to be trained in carrying out field research ( eg in interview techniques) which can be expensive.

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33
Q

what are the advantages of desk research ?

A

because research has already been carried out , it is usually easy to obtain by looking in the newspaper book or website

it is usually cheaper to gather than field research , which save the organisation money.

decisions can be made quickly because the information already exists.

34
Q

what are the advantages of field research ?

A

the research has gathered new information and is therefore more up to date than existing information.

the information has been gathered for a specific purpose and is therefore more relevant to the business needs.

35
Q

Which type of market segmentation would involve introducing own brand products?

A

Income

Low cost supermarkets and own brand products are aimed at consumers with a lower income.

36
Q

What is meant by market segmentation?

A

The process of grouping potential customers together

Market segmentation groups customers by common characteristics such as gender, age or income.

37
Q

Which type of market segmentation could be used for computer games?

A

Age
Computer games are aimed at different age groups and genders.

38
Q

What is meant by a target market?

A

A group of consumers to whom a company wants to sell its products or services

Businesses will focus their products and advertising towards specific target markets.

39
Q

Which method of market research is expensive to undertake?

A

Face-to-face interview

The cost of an interviewer’s salary, training, transport and the sourcing of the interviewees all combine to make this expensive.

40
Q

Which method of market research has the largest geographical reach?

A

Telephone interview

Telecommunications allows interviews to be conducted across the entire world if required.

41
Q

Which method of market research can be successful without an interviewer or facilitator?

A

Postal survey

These are designed to be simple and easy to answer and can be completed without the help of a trained interviewer or facilitator.

42
Q

disadvantage of desk research?

A

May be out of date

43
Q

How do sales perform during the growth stage of the product life cycle?

A

Sales rise

Sales increase during the growth stage of the product life cycle.

44
Q

At which stage of the product life cycle does the testing of prototypes occur?

A

Development

Testing of prototypes is an important part of the product development stage of the product life cycle.

45
Q

Which characteristic describes the introduction stage of the product life cycle?

A

When the product is launched on the market

The introduction stage is when the product is launched on to the market. Advertising costs will be high in order for the product to get noticed.

46
Q

Which characteristic describes the maturity stage of the product life cycle?

A

When sales are at their peak

The maturity stage is when sales are at their peak. They have stopped rising but have not yet begun to decline.

47
Q

Which characteristic describes the decline stage of the product life cycle?

A

When sales begin to fall

During the decline stage sales fall as the product heads towards becoming obsolete.

48
Q

Which of these is an advantage of branding?

A

Premium pricing

Brands are perceived to be of high quality. Consequently many brands are charged at higher prices because consumers are willing to pay a premium price for the brand.

49
Q

Which of the following is needed to build and maintain a brand?

A

Advertising

Advertising is essential to building and promoting a brand.

50
Q

At which stage of the product life cycle would a prototype be created?

A

Development

When a product is being developed or tested it is known as a prototype.

51
Q

At which stage of the product life cycle would idea generation be found?

A

Development

Idea generation is the very first stage of new product development.

52
Q

Which extension strategy would result in a version 2.0 of an existing product?

A

Change product

To slow, halt or reverse a decline in a product’s sales, newer versions of modified products are released to the market.

53
Q

What long term pricing strategy creates a sense of prestige and quality around a product by charging a high price?

A

Premium pricing

This is a long term pricing strategy which aims to make a large profit margin.

54
Q

Which pricing strategy simply involves adding a percentage cost to the cost a product was made for?

A

Cost-plus pricing

This literally means the cost of the goods plus a percentage or mark-up.

Cost-plus pricing literally means the cost of the goods plus a percentage or mark-up.

55
Q

Which pricing strategy is used to establish a product entering a competitive market place for the first time?

A

Penetration pricing

Businesses entering a new market will initially use a low price to lure customers from competitor’s products to theirs. Once market share has been established the low price will be increased to come into line with competitive levels.

56
Q

Which pricing strategy is illegal in the UK?

A

Destroyer pricing

The purpose of this illegal strategy is to put your competitors out of business. By dropping your price to a loss making low you will eventually force your competitors out of the market. Once the competition has gone you can recoup your losses by charging what you like. It is illegal in the UK.

57
Q

Which pricing strategy can be influenced by the time of year?

A

Demand-oriented pricing

This strategy may be seasonal. Demand can fluctuate meaning the price of a product can vary depending on the time of the year.

58
Q

Which pricing strategy needs there to be no competitors in the market place to work effectively?

A

Market skimming

Eager early adopters will pay a high price for a product. While there are no competitors offering a similar product, a business can skim this market by charging the very highest price. When other competitors arrive market-skimming stops.

59
Q

Which pricing strategy starts off at a high price but then is gradually lowered?

A

Market skimming

This strategy is used in new markets where there is little or no competition and where a high price can be charged. As sales dip, the price is lowered to “skim the market”.

60
Q

Which pricing strategy drops the price of a product for a short period of time?

A

Promotional pricing

This strategy is used to attract customers attention by lowering the price for a short period of time.

Promotional pricing is used to attract customers attention by lowering the price for a short period of time.

61
Q

Which pricing strategy only needs to take away a penny to have a considerable impact?

A

Psychological pricing

This strategy relies on the proven emotional appeal of a product priced at £9.99 which seems cheaper that the same product priced at £10.00.

62
Q

Which pricing strategy copies competitors’ prices?

A

Market price

This is when the product is sold at same price as rival products. The business will compete on other factors such as customer service.

63
Q

What do you call a country’s system of transport, communication and utilities?

A

Infrastructure

Infrastructure includes transport, communication etc, to help customers reach or use businesses.

64
Q

Which method of distribution is the most expensive?

A

Air

Flying has high costs due to fuel costs and expensive fixed costs such as pilot’s wages.

65
Q

What needs to be approved by government before a business can start to build a new factory?

A

Planning permission

The construction of a new factory can’t be started without the approval of some level of government.

66
Q

What do you check to ensure a location has enough people living nearby to work in a new factory or shop?

A

Availability of labour

Labour (ie workers) will be needed for any factory or shop. If not nearby it may make recruitment more difficult and costs rise.

67
Q

Which method of distribution is the slowest to transport goods?

A

Sea

Ships are slower than the other forms of transport but can travel vast distances.

68
Q

What would we say a business has when it is located in an area with no competitors?

A

Exclusivity

Exclusivity means the business can charge higher prices due to having no rivals nearby.

69
Q

What advantage is there to locating a business near suppliers?

A

To deliver raw materials cheaply

Being close to suppliers means that delivery costs can be kept down. It also means that deliveries can be made at short notice.

70
Q

Which method of distribution has door-to-door delivery?

A

Road

Vehicles can take goods from a factory or business straight into a warehouse in another factory.

71
Q

What would best improve the local infrastructure of a business and increase footfall to it?

A

A new carpark

Improved parking will make it easier for customers to visit the business and increase footfall.

72
Q

What advantages does rail have as a method of distribution?

A

Can transport large volume of goods

Trains, consisting of many carriages, can transport a large amount of goods around the country.

73
Q

Which of the following methods of advertising is the most expensive?

A

TV advertising

To buy time to show TV adverts on prime time television is very expensive but these ads can reach a large receptive audience.

74
Q

Which of the following methods of advertising allows for demonstration?

A

TV advertising

TV advertising can show customers how a product is used.

75
Q

Which of the following methods of advertising has a ‘captive audience’?

A

Cinema advertising

Cinema audiences cannot switch off the adverts or change to another channel.

76
Q

Which of the following methods of advertising specifically targets smart phone and tablet users?

A

In-app advertising

The only place that people can see in-app adds are on smart phones and tablets which they have downloaded to their devices.

77
Q

Which of the following methods of advertising is the least damaging to the environment?

A

Email advertising

As a digital resource, email advertising has a small carbon footprint.

78
Q

Which of the following methods of advertising can reach the largest audience?

A

Online advertising

Millions of customers globally have access to the internet.

79
Q

Under which of the following descriptions would a BOGOF sales promotion be listed?

A

Special offers

Buy one get one free is a short term special offer intended to increase sales and attract the attention of customers.

80
Q

Which methods of promotion is a shop window display associated with?

A

Point of sale displays

These displays are used to catch the customer’s eye. Point of sale displays are also found in stores and near checkout points.

81
Q

Which of the following methods of promotion relies on customers associating a product with someone famous?

A

Celebrity endorsements

By paying a celebrity to promote their product, businesses hope that customers will be encouraged to buy it.

82
Q

Which of the following methods of promotion involves a product being tried by customers?

A

Free samples

These are small tasters of the product which customers are encouraged to try before they buy.

BUSINESS (5 decks)

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