Marketing - PPQ Misc

Question 1

Advantages of having a varied product portfolio

Answer 1

• Allows organisation to spread risk over different markets
• Can meet the needs of different market segments
• ‘Cash cows’ can fund other, riskier, ventures
• ‘Stars’ can allow a business to be a market leader
• ‘Problem Child’ products give businesses opportunity to invest

Question 2

Sales promotions for launching new product

Answer 2

• Free samples to try
• Free entry to competitions
• Demonstrations of products - let customers see/try new product before buying
• Credit facilities allow customers to buy and pay back

Question 3

Advantages of using a smartphone app to promote product

Answer 3

• customers worldwide targeted
• information about offers and products updated quickly
• customers contacted easily as long as they have internet signal

Question 4

Extension strategies

Answer 4

• change place so seen by more potential customers
• rebranding product - new name creates hype
• lowering price - includes more market segments

Question 5

Types of retailers

Answer 5

• hypermarkets, open 24/7, reduced competition lowers quality
• discount stores, customers enticed by low price, bad image
• online retailers, access to worldwide market, delivery costs

Question 6

Direct selling

Answer 6

• e-commerce, entire range, expensive and time for website
• personal selling, demo, staffing and commission costs
• mail order, reduced staffing and store costs, not environmentally friendly

Question 7

Pricing strategies that could be used

Answer 7

Competitive pricing
- set similar to competitors
- required effective promotion
Market skimming
- price set initially high but lowered over time
- customers want to try products 
Cost plus
- profit margin added to price to manufacture
- easy to set up

Question 8

Into pipeline promotions

Answer 8

• trade credit, no cash required for struggling businesses, bad debt
• dealer loaders, retailers save if buying lots, could overstock and lead to waste
• sale or return, encourages retailers to buy new products, returned in poor condition and wasted

Question 9

Out of pipeline promotions

Answer 9

Special offers
- price lowered for a period of time
-useful for shifting stock
Competitions
- customers buy as chance of winning
- cost of prizes
Loyalty schemes
- collect points
- gain data on customers

Question 10

Channels of distribution factors to consider

Answer 10

• type of product, suitable transportation for product durability, frozen food
• finance available, limited finance affects channel chosen
• image of product, channel should reflect product image, premium product exclusive retailer
• legal restrictions, some products can only be sold in certain places, alcohol

Question 11

Random sampling and quota sampling

Answer 11

• Random respondents are picked randomly, whereas quota is picked from a group of people with specific characteristics.
• Quota cheaper as interview finds suitable respondents, whereas, random must be specific number in list

Question 12

Methods of market research

Answer 12

Focus groups
- detailed feedback obtained
- agreed to take part 
Telephone survey
-instant feedback
- hostile response
Postal survey
- wide geographical area
- target areas