Marketing past paper questions Flashcards
Describe the role of public relations (PR) in an organisation.
build awareness of an organisation
generating press releases
organising press conference
organising sponsorship
donating to charity
Explain the benefits to an organisation of using loss leaders as a pricing tactic.
Can be used in advertising campaigns to attract customers to come into
the organisation. This means the number of customers will increase
customers will come to the store and purchase more than just the loss leader products. This means the business will receive increased profit
Customers may purchase the loss leader priced items in bulk − which
can increase sales.
Explain the advantages to an organisation of having a varied product portfolio
Increases the brand awareness to customers. this means the business will increase their market share
The business can cater to different market segments. this means the business can maximise sales
the business is able to overcome seasonal fluctuations. this means a businesses cash flow will be balanced throughout the year
Will assist the financing of launching new products. this means the business is able to produce new products that are in demand to maximise profits
Explain the advantages to an organisation of using a smartphone application
(app) to promote products.
can reach a global audience. This means more customers will be aware of the products the business sells
photo and video demonstrations can be uploaded. this means benenfits of the product will be highlighted to increase the chance of sales
Compare penetration pricing with skimming pricing.
penetration pricing is when products are priced at a low price when they are first launched ot the market. Whereas skilling pricing is when products are sold at a high price when they are first launched to the market.
With penetration pricing the price will later be increased. whereas with market skimming the price will later be decreased
penetration pricing is a short term pricing strategy. whereas skimming is also a short term pricing strategy
Explain why an organisation may choose to sell its products using a wholesaler
reduced cost for holding stock for the manufacturer. This means the manufacturer will have increased profits
Wholesaler will often advertise the product for the manufacturer. This measn the manufacturer can focus on just producing the product
The manufacturer will not have to make as many small trips to the retailer. This means admin costs are saved
the risk of not selling the product to a retailer or to the customer is taken on by the wholesaler. this means the risk for the manufacturer is reduced
