The Marketing Mix

Question 1

What is the marketing mix?

Answer 1

The marketing mix is a combination of four elements that can help a business market its products or services to its target market.

Question 2

What are the four elements of the marketing mix?

Answer 2

1. Product
2. Price
3. Place
4. Promotion

Question 3

What is Product? What steps does this include?

Answer 3

A product is the actual item (either a physical good or service) provided to meet consumer’s needs.

This includes:

1. Design
2. Product Life Cycle
3. Branding
4. Unique Selling Point (USP)

Question 4

What are the stages of a product life cycle? How can a product avoid decline?

Answer 4

1. Introduction
2. Growth
3. Maturity
4. Decline
   A product can have a resurgence by being changed in some way this is called a product extension.

Question 5

What is a USP?

Answer 5

The USP is what makes the product different from competition and is highlighted to encourage people to buy the product.

Question 6

What is Price? What does the price charged depend on?

Answer 6

The price refers to the amount of money a seller charges a customer for a product/service.
The price charged depends on:
1. Cost of making the product
2. Amount of profit the business wants to make.
3. Stage of product life cycle
4. Competitors prices
5. Target Market

Question 7

Give four pricing strategies and explain them.

Answer 7

1. Cost plus pricing-takes the cost to make a product and adds a percentage of profit on to get the final cost of the item for customers.
2. Loss leaders-selling a product below the cost it takes to make it in order to attract customers.
3. Premium Pricing-charging a permanently high price to give the impression of luxury.
4. Penetration Pricing-charging a low price when a product is first introduced to encourage sales but increasing the price once sales have reached a certain level.
5. Penetration Pricing

Question 8

What is Place?

Answer 8

Place refers to where customers will buy the product and the channel of distribution used to get the product to its location.

Question 9

What are channels of distribution. Give four examples.

Answer 9

Channels of Distribution refer to the way in which the product gets to from the manufacturer to the consumer.

1. Manufacturer»>Consumer e.g. online from company website.
2. Manufacturer»>Large Retailers e.g. Tesco
3. Manufacturer»>Wholesaler»>Retailer e.g. Dealz
4. Manufacturer»>Wholesaler»>Consumer e.g. Amazon

Question 10

What is Promotion? Give four examples.

Answer 10

Promotion refers to raising customers awareness of the product or brand in order to increase sales and create brand loyalty.
E.g. Advertising
        Sales Promotion
        Social Media
        Celebrity Endorsement

Question 11

Explain advertising. Give four examples.

Answer 11

Involves communicating with the public to let them know about a product and get them interested in buying it. E.g. television, radio, newspaper, billboards.

Question 12

Explain Sales Promotion. Give an example.

Answer 12

These are incentives offered to customers to attract them to buy a product.
E.g. free samples

Question 13

Explain Social Media. Give an example.

Answer 13

Many businesses use social media to promote to potential customers. E.g. Facebook.

Question 14

Explain Celebrity Endorsement. Give an example.

Answer 14

Businesses pay celebrities to promote their products by wearing them or appearing in an advert for the product. E.g. David Beckham and H&M.