Marketing NAB

Question 1

Name the 4 elements of the marketing mix.

Answer 1

Product, Price, Place, Promotion

Question 2

Describe Product

Answer 2

A product is an item that is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods.

Question 3

Describe Price

Answer 3

The price is the amount charged to the customer per unit of product.

Question 4

Describe Place

Answer 4

The place is the outlets through which the product is sold.

Question 5

Describe Promotion

Answer 5

The promotion is how you inform and persuade customers to purchase your product.

Question 6

Name the 4 stages of product life cycle

Answer 6

Introduction, Growth, Maturity and Decline

Question 7

Describe the sales, costs and profits at the introduction stage of the product life cycle.

Answer 7

Sales are low, costs are high, making a loss

Question 8

Describe the sales, costs and profits at the growth stage of the product life cycle.

Answer 8

Sales are steadily increasing, costs start to fall, profit is being made

Question 9

Describe the sales, costs and profits at the maturity stage of the product life cycle.

Answer 9

Sales are high, costs are low, profit is high

Question 10

Describe the sales, product and profits at the decline stage of the product life cycle.

Answer 10

Sales fall as new products are introduced to the market
Profits plummet
Product may be withdrawn from the market

Question 11

Name a method of market research and explain

Answer 11

Hall Test - This is where samples of products are given to members of the public and feedback is obtained.

Question 12

Give one advantage and one disadvantage of a hall test

Answer 12

Adv.- Product can be adapted based on feedback

Disadvantage - People often give false positive feedback as they don’t want to offend anyone

Question 13

Give an example of market research

Answer 13

Focus group

Question 14

Give one advantage and one disadvantage of focus groups

Answer 14

Adv.- Facts and opinions are easily obtained

Disadvantage. - It’s expensive as expenses have to be paid for attendees plus room hire/catering etc.

Question 15

Name and describe 2 ways the Internet can aid marketing

Answer 15

1. Through emails- Emails can be sent out to the public to conduct surveys and to target customers with promotions.
2. Electronic Point of Sale - E.P.O.F is used to gather information about spending habits and customer behaviour.