marketing mix

Question 1

what are the 7P’s?

Answer 1

price
place
process
promotion 
product 
people 
physical environment

Question 2

what are industrial goods?

Answer 2

goods that firms sell to each other often known as business to business. they’re often not the final end user of the product

Question 3

define consumer goods

Answer 3

goods sold directly to the end user of the product to satisfy our needs and wants

Question 4

what are convenience goods?

Answer 4

goods that consumers buy frequently with little thought or effort and they want them to be readily available

Question 5

shopping goods are…

Answer 5

goods that consumers think more about buying and will compare products and prices but they still want them to be easily accessible

Question 6

what are speciality goods?

Answer 6

products that consumers will plan to buy and then find it, and are usually willing to travel to do so e.g. sports car

Question 7

what is a product life cycle?

Answer 7

the different stages in the life of a product and the pattern of sales at each stage

Question 8

what are extension strategies?

Answer 8

the methods used to prevent falling sales and extend the life of a product

Question 9

define product portfolio analysis

Answer 9

this analyses the market position of all the products of a business to assess how well they are doing in the market

Question 10

what is the boston box matrix?

Answer 10

this is a method of product portfolio analysis that analyses a products market position in terms of market share and growth

Question 11

define new product development

Answer 11

this is when a firm creates a new or improved product of service for an existing market

Question 12

what are the 5 stages of the product life cycle in order?

Answer 12

introduction
development 
growth 
maturity 
decline

Question 13

name 2 ways how a business might use extension strategies to prolong the maturity stage of a product?

Answer 13

modify the product e.g. new, added, extra ingredients

promote more heavily - more advertising

Question 14

how would profits look in the growth stage?

Answer 14

low

Question 15

what would competition be like in the maturity stage of the product life cycle?

Answer 15

intense

Question 16

what are the 4 parts of the boston matrix?

Answer 16

rising star
problem child
cash cow
dog

Question 17

if a business had a high market share, but a low market growth, which part of the boston matrix would it be in?

Answer 17

cash cow

Question 18

if a business had a low market share and a low market growth, what part of the boston matrix would it be in?

Answer 18

dog

Question 19

which characteristics does a problem child in the boston matrix have?

Answer 19

low market share and high market growth

Question 20

name 2 ways in which a business could be influenced to develop a product

Answer 20

having a product which is coming to the end of its lifecycle- declining

competitors actions; it may be necessary to match them to keep up with competition

Question 21

give 1 value of new product development

Answer 21

firms can develop a USP which can help to differentiate it from the competition

Question 22

what are 2 problems of new product development?

Answer 22

many ideas for new products never make it into production

some firms do better by focusing on a small core of products and deliberately have narrow ranges

Question 23

what are pricing strategies?

Answer 23

the longer term pricing policies of the business used to achieve a firms objectives

Question 24

define penetration pricing strategy

Answer 24

setting a low price to gain market share when breaking into a new market of trying to achieve a sudden increase in market share in a market the firm already operates in

Question 25

what is a price skimming strategy?

Answer 25

setting a high price to gain a high profit margin often done when launching a new product. the price may be lowed later as the initial impact wears off. products must have a very strong USP for this to work

Question 26

define what marketing mix means

Answer 26

the 4P’s are a combination of price, product, promotion and place that influence consumers decision to buy a product or not. the 7P’s add people process and the physical environment