the marketing mix

Question 1

define product portfolio

Answer 1

range of products a business has

equally spread over life cycle

Question 2

define brand

Answer 2

name given to product to help differentiate

Question 3

stages of product life cycle in relation to cash flow

Answer 3

intro/development
growth- high costs , some revenue , (-) cash flow
maturity- high sale volume (+) cash flow
saturation- extension strategy (+) cash flow
decline- (-) cash flow

Question 4

define extension strategy

Answer 4

extended life cycle of product

e.g new flavour

Question 5

7 types of pricing

Answer 5

market skimming 
market penetration 
loss leader pricing 
destroyer
going rate 
psychological 
contribution

Question 6

define market skimming

Answer 6

new, highest price possible

Question 7

define market penetration

Answer 7

existing competitors, lowest price possible.

Question 8

define loss leader

Answer 8

some products low price

encourage to go into store

Question 9

define destroyer

Answer 9

prices so low competitors go bust

Question 10

define going rate

Answer 10

charge same as competitors

Question 11

psychological

Answer 11

make you think lower than it is.

e.g 99p

Question 12

contribution

Answer 12

price covers variable costs

Question 13

define place

Answer 13

where the business sell product

methods of distribution used

Question 14

methods of distribution

Answer 14

TRADITIONAL: manufacturer - wholesaler- retailer- consumer.
MODERN: manufacturer-retailer- consumer.
DIRECT: manufacturer- consumer

Question 15

define promotion

Answer 15

ensure customers know about product.
informative
persuasive
reassuring

Question 16

define above the line

Answer 16

advertising away from point of sale.

e.g newspapers, T.V

Question 17

define below the line

Answer 17

takes place at point of sale

e.g. BOGOF, loyalty cards

Question 18

promotion will change depending on…

Answer 18

customers targeted
budget
economic state
stage in life cycle