Marketing Techniques

Question 1

What the the seven P’s for Marketing mix?

Answer 1

Product
Price
Place
Promotion
People (service)
Processes (service)
Physical Evidence (service)

Question 2

Consumer goods vs Industrial goods

Answer 2

Consumer goods - Goods for the customers

Industrial goods - Goods used for production or other products

Question 3

What are the four types of consumer goods?

Answer 3

Convenience goods (eg. food)
Shopping goods (eg. white goods)
Specialty goods (eg. clothing/jewellery)
Unsought goods (eg. unexpected products - hangers, car polish)

Question 4

What are the five types of industrial goods?

Answer 4

Installations (eg. plant/machinery)
Accessories (PCs)
Raw Material
Components
Supplies (stationery)

Question 5

What are the different types of product attributes?

Answer 5

Core product (eg - Benefits - Transport)
Actual/basic products (eg. Air bags)
Expected product (eg. expectation - performance / reliability)
Augmented product (eg. services / warranty)
Potential product (eg. future enhancement better fuel economy)

All examples are based on a car

Question 6

Out of all the product attributes what attribute are products usually marketed at?

Answer 6

Augmented product

Question 7

What are the different product ranges?

Answer 7

Product Item - Specific product
Product line - Similar items (flavors of crisps)
Width/Breadth - The number of product lines (hair care / shower / toiletries)
Depth (Average number per product line)
Consistency (the closeness of relationships between products - eg, lipstick and eye shadow)

Question 8

Design the BCG matrix

Answer 8

Market growth rate - High / Low
Relative market share - High / Low

From top left to bottom right

Star - Good earner - good for the future
Problem child - Very popular - too competitive
Cash cow - Small earner - good customer loyalty
Dog - Not a good earner

Question 9

What are the stages of product development?

Answer 9

Customer needs (product is designed)
Screening (Considering profit and market share)
Design (marketing techniques)
Time to market (market the product)
Testing (testing the product to see if it meets the needs)

Question 10

What are the phases of a product life cycle?

Answer 10

Introduction stage (heavy advertising costs)
Growth stage (Volume of demand increases)
Market maturity ((Demand levels off)
Decline stage (Demand declines)

Question 11

What are the types of distributions?

Answer 11

Channel - Where the products are sold to. eg. shops
Zero level distribution - Customer
One level distribution - to retailer then to customer
Two level distribution - to wholesaler the to retailer

Question 12

What are the aims of promotion? AIDA

Answer 12

Attention
Interest
Desire
Action

Question 13

Above vs below the line promotion tools

Answer 13

Above = media eg. press/radio/cinemas
Below = product eg. packaging/on pack discounts and competitions

Question 14

What is price discrimination?

Answer 14

When there is a high demand and the customer is willing to pay you can increase the prices. This lets you to lower the prices when the demand falls

Question 15

What is quantum pricing?

Answer 15

Psychological. eg. 99p rather that £1

Question 16

What are the five characteristics of services?

Answer 16

Intangibility (not material - eg. service delivery)
Inseparability (can not be separated from the provider)
Heterogeneity (maintaining consistency)
Perishability (cannot be stored - eg seats on a bus)
Ownership (user has access not ownership)

Question 17

What are the three Ps for services?

Answer 17

People (physical presence)
Processes (ticketing system for efficiency)
Physical evidence (tickets or programmes to help with a service)