Marketing Mix

Question 1

5p’s of pricing methods

Answer 1

. Skimming
. Penetration pricing
. Competitor pricing
. Cost-plus pricing
. Promotional pricing

Question 2

Skimming

Answer 2

Where a product is set high initially as consumers are willing pay so a profit it made, then price is reduced to normal

Question 3

Penetration pricing

Answer 3

Low price is initially charged to persuade customers in trying the product, then the price increases as sales go up

Question 4

Promotional pricing

Answer 4

Price is lowered to persuade customers to buy old stock or a slowing down product with bad sales

Question 5

Cost-plus pricing

Answer 5

The cost of the profit is calculated and then a amount of profit wanted is added to decide the price

Question 6

Competitor pricing

Answer 6

Businesses look at prices charged by competitors before deciding its price.

Higher or lower or same price

Question 7

4p’s of marketing mix

Answer 7

product, price, place, promotion

Question 8

Price

Answer 8

Links with the 5p’s
. Skimming
. Penetration
. Promotional
. Cost-plus
. Competitor

Question 9

Product

Answer 9

Introduction of new products to a businesses sales
Design, invention, innovation
- Product life cycle = introduction, growth, maturity, decline

Question 10

Place

Answer 10

Shop locations, also physical and digital distribution.
. Physical - service in a physical presence
. Digital - use of websites and distributions

Question 11

Promotion

Answer 11

Targeted advertising to generate interest from their specific audience
. Age
. Gender
. Income
..