mr smith-theme 3 marketing mix and strategy

Question 2

what are the 3 types of branding

Answer 2

Manufacturer or corprate branding
Own branding
Product branding

Question 3

cooperate branding

Answer 3

company
how a business presents itself
lots of separate product brands within cooperate brand
e.g Kellogg’s has recongiseable brand and then several products using that logo

Question 4

own branding

Answer 4

in house type of branding
not recongsie brand
cheap to produce and sold at cheaper prices
adv-consumes have a cheaper option then the big brands
dis-can associate own branding as being lower in quality

Question 5

product branding

Answer 5

product
specific individual products that a cooperate brand makes
individual product will have its own logo, and slogan
cooperate brand included to show its associated with them
customers will trust it more
ADV-customers are willing to buy more as trusted product
DIS-some customers may not be happy paying higher prices

Question 6

rebranding

Answer 6

marketig stratgy where desivgn, promotion, pricing is changed
busienss may want to aim its product at different target market
may chnage identitiy as no longer suitable

Question 7

reasons business makes a strong brand

Answer 7

add value to product
consumer percieves it as high quality
more desirbale then substitutes
prepared to pay premium price
can create barrier so harder for new comers to enter market

Question 8

penetration pricing

Answer 8

low to high
product charged at low price initially to attract customers
targets people with less money
can be used as an extension strategy technique-increasing a products life cycle
DIS-hard to change price without customers noticing
ADV-

Question 9

emotional branding

Answer 9

branding product so it matches lifestyles, asspirations and values of target market to trigger emotional response

Question 10

price skimming

Answer 10

high to low
product charged at high price when first reaches the market
can be for new technology
people willing to spend more on ‘new in thing’
high price boosts product image
product been on year or so, reduced
everyone who /is prepared to pay higher price at start is now gone
DIS-product may not want to pay initial high price
customers who payed normal initial price may be annoyed that they didnt get the lower price

Question 11

cost plus pricing

Answer 11

firm adds a percentage mark up to the costs of making the product

Question 12

predatoory pricing

Answer 12

delibertayly reducing prices to push other businesses out of market
once competitor gone, will increase price again

Question 13

competitive pricing

Answer 13

charging products at same prices as competitors to be in more compeotive market

Question 14

psycholgoical pricing

Answer 14

charging products at 9.99 rather then 10
in head,makes customer feel there spening much less when actually onely 1 pence difference
high price people asssociate as being high quality
low price people asssociate as being low quality

Question 15

distribution

Answer 15

two stage channel
manufacturer-consumer

three stage channel
manufacturer-retailer-consumer

four stage channel
manufacturer-wholesaler-retailer-consumer

Question 16

two stage distribution channel

Answer 16

manufacturer-consumer
using online services/ecommerce
can also be done by door to door selling
adv-business doesn’t have to pay for staff or shop

Question 17

indirect selling-three stage channel

Answer 17

manufacturer-retailer-consumer
used for recreational items e.g clothes,shoes
retailers are located in places convenient to sellers

Question 18

indirect selling-four stage channel

Answer 18

manufacturer-wholesaler-retailer-consumer
traditional channel of distribution
used for groceries

Question 19

what do wholesalers do

Answer 19

buy goods from manufacturers in bulk
sell them in smaller quantities to retailers
manufactureres dont have to wait till cutomers buy their product as get cash beforehand

Question 20

adv of wholesalers

Answer 20

manufactureres can recieve cash before consumerrs even buying the products

store more goods than a retailer can-act as retailers cupboard

retailers do not have to make as many journeys, reducing transport costs

Question 21

definition of channel of distribution

Answer 21

channel product takes from manufacturer to consumer

Question 22

multi channel distribution

Answer 22

business sells through more then one method
e.g. online and in store
e.g. clothes shops ZARA
has clothes shop online and actual clothing shop to visit

Question 23

online distribution

Answer 23

selling services/streaming/downloading rather then a physical product

Question 24

adv of online retailing

Answer 24

-customers recives it immediately(doesnt have to wait for delivery)
-cost savings/no packaging used
-enviromentally friendly-no costs for transporting goods

Question 25

dis of online retailing

Answer 25

staff need to be trained for IT work

Question 26

product life cycle

Answer 26

shows the sales of a product over time

Question 27

what are all the stages of a product life cycle
DIGMD

Answer 27

development
introduction
growth
maturity
decline

Question 28

development stage of product life cycle

Answer 28

product is developed
marketing department do market research
costs are high, no sales yet to cover costs
has high failure rate as product may not have enough demand or the price of making the product is more then how much they are getting for it(profit reduced)

Question 29

introduction stage of product life cycle

Answer 29

product is launched
business promotes product to build sales
may use price skimming to cover promotional costs
may use penetraton pricing to encourage sales
sales go up buy sales revenue must cover costs of developpment before product can make profit

Question 30

growth stage

Answer 30

sales grow fast
new cutsomers and repeated customers
product may be improved and devloped, may be targeted at different target market

Question 31

maturaity stage of product life cycle

Answer 31

sales reach a peak
profit increases as fixed costs for development have been payed off
saturation(market is full and reached max growth) sales begin to drop
more liekly to drop for products that dont need buying regualrly (long-lasting)

Question 32

decline stage of product life cycle

Answer 32

product doesnt appeal to customers any more
sales fall and profits fall
if promotinal costs reduceed enough, product may stay profitable
sales carry on falling, product withdrwn or sold to another business
caused by product become obselete or change in consumer trends/tastes

Question 33

what is an extension strategy

Answer 33

strategy that increases product life cycle when product starting to decline

Question 34

examples of extension strategies

Answer 34

product development-improving or redesigning a product

promotion-running special offers, ad campaign

Question 35

boston matrix

Answer 35

compares market growth and market share
each circle in matrix represnts a product
size of the circle represnts sales volume

Question 36

what are the 4 factors in the Boston Matrix
SQDC

Answer 36

question marks
stars
cash cows
dogs

Question 37

question marks

Answer 37

all new products
small market share high market growth
are not profitable yet
could succeed could fail

Question 38

cash cows

Answer 38

high market share but low market gowth
maturity phase
produced in high volumes, low costs

Question 39

stars

Answer 39

high market share and high market growth
in growth stage
have most potential
competitors may take advanatge of growth

Question 40

dogs

Answer 40

low market share an low market growth
if product no longer making profit, may be sold off
practically a lost cause

Question 41

mass marketing strategy

Answer 41

needs to appeal to whole market instead of individual segments
need to have mass appeal

Question 42

what are marketign stretegies used for

Answer 42

B2B marketing-sale of one business product to another business
e.g. gloves to hospital
B2C marketing-sale of businesses product to consumers
e.g. ready meals to shoppers in supermarket
B2B doesnt need to think of emotioal component, only has to think abou.t informtaive component

B2B more leiktly to use trade journals and shows rather then adverisitng echniques bc taget audience wont be there

Question 43

customer loyalty

Answer 43

strong customer service before and after purchase
sales people try to make customers happy so that they repeat purchasing
customers need info on fucntion and quality of good before buying it
after pruchase also imporant if any issues occur
customer feel more valued and more likely to repeat any purchases

Question 44

loyalty cards

Answer 44

tesco clubcards
stamp each time visit Starbucks