Paper 3 example questions Flashcards
Everything you need to know for paper 3 from the advanced information 2022
Give 2 internal stakeholders
- owners/ managers
- employees
Give 5 examples of external stakeholders
- customers
- suppliers
- local community
- government
- creditors - people the business owes money to
What analysis technique takes into account the power and interest of stakeholders?
Stakeholder mapping
What are the axis variables on a stakeholder map?
Power/ influence (y) and interest (x)
Relationships with stakeholders are important. How can a business keep them satisfied?
1) Adapt to external influences
2) Don’t just focus on one stakeholder at the expense of another
3) Consult all stakeholders before major decisions
4) Keep good communication between the business and their stakeholders
List the 7p’s
Price Product Place Promotion People Physical environment Process
A business’ marketing mix must be…
Integrated
Give the 3 types of consumer product
Convenience
Shopping
Speciality
What is a convenient product?
Inexpensive, everyday items bought regularly by lots of people
What are shopping products?
These are things like clothes, computers and washing machines that are bought less regularly than convenience products. They are more expensive and are sold in fewer places than convenience products
What are speciality products?
These are products that are unique in some way. Percieved image and quality are more important to consumers than price for speciality products, so higher profits can be made from them
What does the Boston matrix analyse?
Product portfolio
What does the x-axis represent on a Boston matrix?
Market share
What does the y-axis on the Boston Matrix represent?
Market growth
What are the 4 quadrants of the Boston Matrix?
Stars
Question marks
Cash cows
Dogs
Give 3 reasons why it is beneficial to develop new products
1) Bring in new customers
2) They give a competitive advantage
3) They allow companies to maintain a balanced product portfolio
What are the 5 stages of the product life cycle?
1) Research and development
2) Introduction
3) Growth
4) Maturity
5) Decline
What extension strategies can a business implement to prolong the life of a product?
1) Product development
2) Market development
3) Change the distribution channels
4) Change the pricing strategy - offers and competitions
5) Promotions - new ad campaign
Give some factors that affect pricing decisions
1) Value of costs / mark ups
2) How price sensitive customers are
3) Price elasticity of demand
4) The stage of the products life cycle
5) Corporate objectives
6) The price of competitor products
Give the 7 types of pricing strategies
1) Price skimming
2) Price penetration
3) Predatory pricing
4) Competitive pricing
5) Psychological pricing
6) Loss leaders
7) Price discrimination
What is price skimming? And give an example
When new and innovative products are sold at high prices when they first reach the market. Consumers will pay more because the product has scarity value, and the high price boosts the products image and increases its appeal. An example of this is the launch of PS5
What is price penetration?
The opposite of skimming. It means launching a product at a low price in order to attract customers and gain market share. It is especially effective in markets that are price-sensitive
What is predatory pricing?
When a business deliberately lowers prices to force another business out of the market (this is illegal under EU and US laws)
What is competitive pricing?
When companies monitor their competitors’ prices to make sure that their own prices are set at an equal or lower level