Term 3 Topic 3.3 - Marketing function

Question 1

Name the 5 ACTIVITIES of marketing

Answer 1

1) Production
2) Pricing Policy
3) Distribution
4) Marketing Communication
5) Foreign Marketing

Question 2

Name the 6 P’s of MARKETING

P / P / P / P / P / P /

Answer 2

1) Product
2) Promotion
3) Place
4) Price
5) Presentation
6) Personnel

Question 3

Name the ELEMENTS of marketing

Answer 3

Locating the customer **
Standardising and grading **
Storage **
Transport **
Financing **
Risk bearing **
Buying & Selling **

Question 4

Explain PRODUCT POLICY

Answer 4

> > Product DEVELOPMENT
>Product DESIGN
»Product PACKAGING
»>Trademark

Question 5

Explain DISTRIBUTION POLICY

Answer 5

\\ CHANNELS of distribution
\\\ Intermediaries
\\\\ DIRECT distribution
\\\\\ INDIRECT distribution

Question 6

Explain COMMUNICATION POLICY

Answer 6

Sales promotion
**Advertising
**Publicity
**Personal selling

Question 7

Explain PRICING POLICY

Answer 7

..IMPORTANCE of pricing
… pricing TECHNIQUES
…. price DETERMINATION
……FACTORS influencing pricing
…….. price ADJUSTMENTS

Question 8

The PRICING POLICY is divided into 2 sections, namely

Answer 8

1) Pricing techniques
2) Pricing determination

Question 9

Name 4 TECHNIQUES for pricing

Answer 9

Cost-plus pricing
## Mark-up pricing
### Target pricing
#### Break-even pricing

Question 10

What DETERMINES pricing?

Answer 10

a) cost price
b) market price
c) target price
d) final price

Question 11

‘No employment contracts and no taxes paid’ = which sector does this belong to?

Answer 11

Informal sector

Question 12

‘Formal employment with contracts and taxes paid by earners and business’ = which business sector does this belong to?

Answer 12

Formal sector

Question 13

Marketing in the BUSINESS SECTORS consists of 2 sectors. Name them

Answer 13

1) Informal sector
2) Formal sector

Question 14

Explain the TYPES of TECHNOLOGY used in marketing (4 types & mention an example of each)

Answer 14

1) Communication (email, cell phones)
2) Computers (email, e-marketing)
3) Media (TV, Radio’s, Electronic billboards)
4) Virtual images (3D reality imaging)

Question 15

Foreign marketing consists of TWO sections, name them:
….(a)…. + …(b)…… = Foreign Marketing

Answer 15

a) Imports
b) Exports

Question 16

What are the ADVANTAGES ++ of foreign marketing?

Answer 16

+ Reaches a larger TARGET market
++ Increase PROFITS
+++ Different TIME ZONES means business
never stops
++++ Benefit from advanced SYSTEMS in
DEVELOPED countries
+++++ Does not rely on LOCAL demand

Question 17

What are the DISADVANTAGES – of foreign marketing?

Answer 17

• EMBARGOS (ban on trade) from certain
  countries could limit imports
  – Some imports have higher TAXES
  — Import QUOTA (limits how many goods
  can be imported)
  —- EXCHANGE RATES : could be costly
  —– Cost of TRANSPORTATION could be
  costly if it must be couriered
  ——Goods can be DAMAGED (carrying the
  costs)
  ——–INSURANCE on posted goods
  (additional cost)

Question 18

How do you ALIGN the production function with the foreign market?

Answer 18

a) Sell EXISTING products on foreign market
b) ADAPT EXISTING products to suit the
foreign market
c) Produce brand NEW products

Question 19

What is the production processes which need to be adapted for the foreign market? It all affect PRODUCTION PROCESSES

Answer 19

@ Production SYSTEMS
@ Production PLANNING
@ Meeting a country’s SAFETY
REQUIREMENTS
@ QUALITY of product to compete with
foreign products
@ COSTING of products must be
competitive

Question 20

List the FOUR stages of a product’s life cycle

Answer 20

Introduction -> growth -> maturity -> decline

Question 21

Is this statement TRUE or FALSE (If false, provide the correct statement)

Demographics are the measured statistics of a population, e.g. the ages, gender and income levels of a group of people

Answer 21

True

Question 22

Is this statement TRUE or FALSE (If false, provide the correct statement)

Standardisation is the process of giving a rating or label to a product to show its quality

Answer 22

False - it is called grading

Question 23

Is this statement TRUE or FALSE (If false, provide the correct statement)

A trademark is a label on a package that states what goods it contains

Answer 23

False - a trademark is a specific logo or symbol that defines a product and that only the owner of that product may use

Question 24

Is this statement TRUE or FALSE (If false, provide the correct statement)

Direct distribution is done when a manufacturer uses an intermediary to sell goods to consumers

Answer 24

False - this is indirect distribution

Question 25

Is this statement TRUE or FALSE (If false, provide the correct statement)

Advertising is sending out a message about a product so that consumers will be interested and buy the product, thereby increasing sales.

Answer 25

True

Question 26

Name 2 advantages of DIRECT DISTRIBUTION

Answer 26

A) Better profits
B) Demonstrates a product to the
consumer
C) Ensures a product’s best qualities are
explained during selling

Question 27

Name 2 advantages of INDIRECT DISTRIBUTION

Answer 27

A) Larger market base
B) The manufacturer paying for the advertising
C) Enables consumers get a wider range of products to choose from
D) Generates a large customer database

Question 28

Explain how the AIDA principle should be applied in advertisement

Answer 28

A - ATTENTION of the customer is achieved
I - INTEREST from the customer in the
product is created
D - DESIRE of the customer to want that
product is instilled
A - ACTION occurs when the customer
comes to your store to buy the product

Question 29

Explain how the 4 different PRICING TECHNIQUES are applied in business

Answer 29

COST-PLUS PRICING:
adding a fixed amount to the cost price to determine the selling price

MARK-UP PRICING: %
adding a percentage % of the cost price to the cost price to determine the selling price

TARGET PRICE :
setting a fixed price so that a required profit value can be made

BREAK-EVEN PRICING : =
setting a price above a calculated break-even point

Question 30

Give a definition of:

When a product comes on the market a at a high price and is then slowly reduced

Answer 30

Price skimming

Question 31

Give a definition of:

When a product comes on the market at a very low price so that everyone buys it, and then the prices shoot up

Answer 31

Penetration pricing

Question 32

Give a definition of:

When goods are advertised at very low prices to get people into the store, often with a very limited number of goods, so that people can buy other more expensive items while shopping

Answer 32

Bait prices

Question 33

Give a definition of:

When goods are advertised at a special low price even if the seller doesn’t make a profit

Answer 33

Leader pricing

Question 34

Give a definition of:

When prices are set to match current market prices

Answer 34

Market-level pricing

Question 35

Give a definition of:

When the price of a unique good is very high because there is no competition

Answer 35

Premium pricing

Question 36

Give a definition of:

When prices are set just below a higher number, such as R99 or R999, so that it looks cheaper to many consumers

Answer 36

Psychological pricing

Question 37

Give a definition of:

When prices of goods change according to season, demographics or cultural factors

Answer 37

Variation pricing