Marketing MIx

Question 1

What are the five stages of the product life cycle and their meanings?

Answer 1

1. Development-Pre launch work done by the business.
2. Introduction-Sales are low but large amount of capital is still used.
3. Growth-Sales and profits are steady.
4. Maturity-Rate of sales begin to slow down and it is time to improve the product or find a new one.
5. Decline-When product is withdrawn to avoid business making a loss.

Question 2

What are the 3 main ways of setting prices and how does each one work?

Answer 2

1. Cost Plus-Business calculates cost of production and adds on percentage for profit.
2. Penetration-Price is set lower than competition to increase market share.
3. Loss Leader-Product is sold at low profit or below cost to attract new customers.

Question 3

What is the order for the traditional channel of distribution?

Answer 3

Producer
Wholesaler
Retail
Consumer

Question 4

1. Who would a large supermarket buy from?

2. Who would a small corner shop buy from?

Answer 4

1. A producer

2. A wholesaler.

Question 5

What are the 4P’s in marketting?

Answer 5

Price
Product
Place
Promotion

Question 6

List 4 examples of ways in which a market may be segmented.

Answer 6

Age
Income
Location
Gender