Module 3

Question 1

marketing mix

Answer 1

product
price
place
promotion
physical evidence
people
process

Question 2

Variety in product specifications

Answer 2

Potential to increase costs
Expect a reliable product

Question 3

Laws and regulations

Answer 3

Part of formal directors responsibilities to implement wide range of control activities

Question 4

Go no go stage

Answer 4

Launching business needs support so more detailed proposal and analysis

Question 5

Screening stage

Answer 5

Relates to product and product market

Question 6

characteristics of start-up

Answer 6

high overhead costs
high unit costs
low sales
low levels of competition
high prices

Question 7

characteristics of growth

Answer 7

decreasing costs due to economies of scale
increasing levels of competition
falling prices

Question 8

characteristics of shake-out

Answer 8

market leaders - strong market share, falling prices, strong brand
other businesses - weak market share, falling prices, weaker brand

Question 9

characteristics of maturity

Answer 9

low development costs
customers primary focus is cost
maximum sales volume

Question 10

characteristics of decline

Answer 10

market saturation
decreasing costs and sales
intense pressure on prices