Topic 2.2

Question 1

What makes up the design mix

Answer 1

Function
Cost
Appearance

Question 2

Stages of a product life cycle

Answer 2

Research and development
Introduction
Growth
Maturity
Decline

Question 3

How might firms attempt to extend the life of a product

Answer 3

Adding more/ different features
Using new packaging
Targeting new markets
Changing advertisements
Lowering price

Question 4

Examples of factors affecting pricing

Answer 4

Internal factors:
Technology
Method of production
Product life cycle

External:
Competition
Market segments
Cost of raw materials

Question 5

Example of pricing strategies

Answer 5

Price penetration
Loss leader
Price skimming
Competitive Pricing
Cost-plus pricing

Question 6

Why is good branding important

Answer 6

Makes the business recognisable and liked

Question 7

How can businesses promote their products

Answer 7

Advertising
Sponsoring
Special offers
Technology

Question 8

Why is the place where products are sold important

Answer 8

To make sure it’s available to their target market