Marketing Mix And Strategy 1.3

Question 1

Define design

Answer 1

The balance between attraction and affordability for customers

Question 2

What does the design mix include

Answer 2

Aesthetics (looks)
Function (purpose)
Cost (production)

Question 3

How does design add value

Answer 3

• differentiates from competition (unique)
• Branding
• attracts customers

Question 4

Sustainability (in terms of consumer purchase)

Answer 4

Making something using materials that will still be around for future generations

Question 5

Benefits of waste minimisation

Answer 5

• keeps productions costs down
• helps save materials for future generations
• reduces businesses carbon footprint
• good image / reputation (attracts good attention)

Question 6

What does ethical sourcing include?

Answer 6

• equality and fair treatment for employees
• safe conditions for employees
• fair trade for suppliers

Question 7

Branding

Answer 7

The skill of giving a product or service distinctiveness (personality)

Question 8

Advantages of branding

Answer 8

• effective promotion
• customers are more likely to repeat purchase
• easier to persuade retailers to stock

Question 9

Corporate brand

Answer 9

So powerful and distinctive that they stand on their own e.g marmite (represents all products)

Question 10

Brand family

Answer 10

a company that represents many products

Question 11

benefits of strong branding

Answer 11

• adds value
• charge premium prices
• reduces PED

Question 12

ways to build a brand

Answer 12

• USP (product differentiation)
• advertising and promotion
• digital media and sponsorships

Question 13

what is viral marketing?

Answer 13

social media that provides a high speed of a product being displayed to a large audience

Question 14

benefits of using social media?

Answer 14

• targeting can be very precise
• creates bond between consumer + brand
• crowdfunding

Question 15

what is crowdfunding?

Answer 15

receiving external finance from many individual, small investments, usually through a web-based appeal

Question 16

emotional branding?

Answer 16

• an attempt to create an emotional connection between customers and the brand.

Question 17

persuasive advertising

Answer 17

designed to create a distinctive image e.g. McDonalds and its slogan

Question 18

public relations

Answer 18

attempt to affect consumers’ image of a product without spending money on media advertising. e.g. making contacts with journalists or obtaining sponsorships

Question 19

capacity utilisation

Answer 19

measures the actual usage of your facilities as a percentage of the maximum possible

Question 20

pricing strategy

Answer 20

the plan for setting a products price for the medium to long term

Question 21

skimming (new products)

Answer 21

used when their is no competition. initial price is high and covers development costs as well as being profitable

Question 22

penetration (new products)

Answer 22

launching a product into a market with similar products to try and gain market share

Question 23

cost-plus (existing products)

Answer 23

cost of production then adding a percentage mark-up that reflects the profit level that the business wants

Question 24

competitive pricing

Answer 24

price set at market level or at a discount price - this is used in highly competitive market

Question 25

predatory

Answer 25

pricing low enough to drive your rivals out of business (if the predator is financially strong, or the other company is financially weak)

Question 26

psychological

Answer 26

businesses think prices like 50p and 1.00 psychological price barriers - so they use 49p and 99p

Question 27

distribution?

Answer 27

getting the product to the right place for customers

Question 28

opportunity cost?

Answer 28

the cost of missing out on the next best alternative when making a decision

Question 29

impulse purchase

Answer 29

buying in an unplanned manor - because you see it

Question 30

direct to retailer?

Answer 30

large producers ——-> retailers

Question 31

direct online

Answer 31

sells directly to customer (mail order or online)

producer keeps 100% selling price

Question 32

online retail

Answer 32

selling items off of another established platform e.g. amazon

Question 33

what is a product life cycle?

Answer 33

shows the sales of a product over time

Question 34

5 stages of PLC

Answer 34

development 
intro
growth
maturity 
decline

Question 35

extension strategy?

Answer 35

prevent decline in sales

Question 36

examples of extension strategies?

Answer 36

• relaunches with new variations and features

- promotion e.g. targeting a new segment of a market

Question 37

portfolio analysis

Answer 37

examines the existing position of a firms products