Marketing Mix (Chapter 6)

Question 1

What is the definition of Marketing Mix?

Answer 1

The combination of the 4P’s working together in order to achieve the marketing objectives that the business has set.

Question 2

What is the definition of the 4P’s of marketing?

Answer 2

Product, Price, Promotion, Place: The 4P’s of marketing is a model for enhancing the components of your “marketing mix” or the way in which you take a new product or service to market.

Question 3

What is the definition of “Product”?

Answer 3

It refers to the goods or services that the busines offers to the customer.

Question 4

What are the 4 components of “Product”?

Answer 4

• Positioning
• Features
• Branding
• Packaging

Question 5

What is Product Positioning?

Answer 5

Product positioning encompasses all the methods that are used to create a unique impression of the product in the minds of potential customers.

Question 6

What is Packaging?

Answer 6

The designing and developing of the wrapper/container of a brand’s product to communicate the brand and product information by making it look attractive.

Question 7

What is Branding?

Answer 7

The process where a business makes itself known to the public and differentiates itself from competitors.

Question 8

What is the definition of “Price”?

Answer 8

The pricing process involves setting the price of the product. A good pricing strategy will ensure sales income and meet profit objectives.

Question 9

What are the 4 different Pricing Strategies?

Answer 9

Skim, Penetration, Psychological and Premium.

Question 10

What is the definition of Skim Pricing?

Answer 10

A pricing strategy where a company charges the highest price for the initial price customers will pay.

Question 11

What is the definition of Penetration Pricing?

Answer 11

A pricing strategy where a company charges deliberately lower prices than their competitors to penetrate the market and gain a large market share.

Question 12

What is the definition of Psychological Pricing?

Answer 12

A pricing strategy based on the theory that certain prices have a bigger psychological impact on consumers than others. E.g. $2.99, $1.95

Question 13

What is the definition of Premium Pricing?

Answer 13

A pricing strategy that involves setting the price of a product higher than similar products to perceive it as a higher luxurious item.

Question 14

What is the definition of Promotion?

Answer 14

Refers to the entire set of activities, which communicate the product, brand or service to the user.

Question 15

What are 4 types of Promotion?

Answer 15

Viral, Direct, Push and Pull.

Question 16

What is the definition of Push Promotion?

Answer 16

The creation of demand by “pushing” the product onto consumers.

Question 17

What is the definition of Pull Promotion?

Answer 17

The creation of demand by “pulling” the consumer in.

Question 18

What is Viral Marketing?

Answer 18

Viral marketing is the process of a multimedia message being passed along from person to person to create awareness and interest for a brand or product, e.g. social media, mobile applications, e-newsletters, e-commerce.

Question 19

What is the definition of Place?

Answer 19

Refers to the distribution methods and location an organisation chooses to ensure its products or services are easily accessible to their target customers.

Question 20

What are the 3 different Place Strategies?

Answer 20

Direct distribution, Indirect distribution, Location.

Question 21

What is the definition of Direct Distribution?

Answer 21

When a business distributes its products directly to its customers.

Question 22

What is the definition of Indirect Distribution?

Answer 22

When a business distributes its products indirectly to its customers, usually through retail outlets.

Question 23

What is the definition of Location?

Answer 23

Refers to the place at which a business is situated so that they enable customers to access their products.

Question 24

What are the extra 3P’s?

Answer 24

People, Process, Physical.

Question 25

What is the definition of People?

Answer 25

The staff and employees who are working with the customers of the business.

Question 26

What is the definition of Customer Relationship Management?

Answer 26

The process by which a business administers and manages its interaction with customers.

Question 27

What is the definition of Process?

Answer 27

What the customers experience at each stage of the customers’ interactions.

Question 28

What is the definition of Physical?

Answer 28

The presence of the business that encompasses all the elements of the business identity that the customer can see, e.g. signage, webpage, staff uniform.

Question 29

What is the definition of Performance?

Answer 29

The evaluation of business marketing objectives using key performance indicators (KPIs), including: sales revenue, sales returns and customer satisfaction.

Question 30

What are 2 strategies for Managing Customer Relationships?

Answer 30

Customer Loyalty, An Early Adopter.