Public Interaction

Question 1

4 Ps of marketing

Answer 1

Price
Promotion
Product
Place

Question 2

6 types of pricing

Answer 2

Cost-plus pricing - ensures profit
Competitive pricing - strong competition
Penetration pricing - profit compromised for market share
Price skimming - new products price set high to maximise profits, then reduced when demand lowers
Destroyer pricing - competitors can’t match
Price discrimination - discriminate price due to customer e.g. Car insurance

Question 3

Ansoff Matrix (4)

Answer 3

Market penetration - increase sales of existing product or existing market
Product development - improve present products or develop new for new marker
Market development - sell existing products to a current market e.g. Export sales
Diversification - develop new products for new markets

Question 4

3 types of Place

Answer 4

Break bulk (producer, wholesaler, retailer, customer) e.g. Shopping at corner shop
Products, retailer, customer e.g. Shopping at Tesco 
Direct marketing (producer, customer) e.g. Services

Question 5

4 objectives of promotion

Answer 5

Inform customers of product and business
Show benefits of product
Persuade potential customers to buy product
Present a good image

Question 6

Why is promotion used (4)

Answer 6

Increase market share
Enter a new market (segment)
Extend life of a product
Launch a new product into a market

Question 7

2 methods of promotion

Answer 7

Price reductions, offers, samples, competitions

Brochures and catalogues, point of sale, website, after sales (e.g. Warranties)