Topic 3 - Marketing Mix and Strategy

Question 1

Design mix

Answer 1

The range of important features when designing a product

Question 2

Ergonomics

Answer 2

The study of how people interact with their environment and the equipment that they use, often in the workplace

Question 3

Ethical sourcing

Answer 3

Using materials, components & services from suppliers that respect the environment, treat their workforce well & trade with integrity

Question 4

Product design

Answer 4

Process of creating a new product or service

Question 5

Recycling

Answer 5

Making use of materials that have been discarded as waste

Question 6

Resource depletion

Answer 6

Using up of natural resources

Question 7

Waste minimisation

Answer 7

Reducing the quantity of resources that are discarded in the production process

Question 8

Above the line promotion

Answer 8

Placing adverts using the media

Question 9

Advertising

Answer 9

Communication between a business and its customers where images are placed in the media to encourage the purchase of products

Question 10

Consumer durables

Answer 10

Goods that can be used repeatedly over a period of time e.g. A car

Question 11

Below the line promotion

Answer 11

Any promotion that does not involve using the media

Question 12

Emotional branding

Answer 12

The practice of using the emotions of a consumer to build a brand

Question 13

Generic brands

Answer 13

Products that only contain the name of the product category, rather than a company or product name

Question 14

Manufacturer brands

Answer 14

Brands created by the producers of services

Question 15

Marketing mix

Answer 15

The elements of a business’s marketing, that are designed to meet the needs of customers. The four elements are often called the 4 P’s - Product, Price, Promotion and Place

Question 16

Merchandising

Answer 16

A promotion specifically at the point of sale of a product.

Question 17

Own label, distributor or private brands

Answer 17

Products manufactured for wholesalers or retailers by other businesses

Question 18

Point of sale

Answer 18

Any point where a consumer buys a product

Question 19

Promotion

Answer 19

An attempt to obtain and retain customers by drawing their attention to a firm or its products

Question 20

Public relations

Answer 20

An organisations attempt to communicate with interested parties

Question 21

Sales promotions

Answer 21

Methods of promoting products in the short term to boost sales

Question 22

Sponsorship

Answer 22

Making a financial contribution to an event in return for publicity

Question 23

Viral marketing

Answer 23

Any strategy that encourages people to pass on messages to each other about a product or business electronically

Question 24

Competitive pricing

Answer 24

Pricing strategies based on prices charged by rivals

Question 25

Cost plus pricing

Answer 25

Adding a % mark up to costs of producing a product, to get a price

Question 26

Mark up

Answer 26

% added to unit cost that sets a sales price that will make a profit for the business

Question 27

Penetration pricing

Answer 27

Setting a low price when launching a new product in order to get established in the market

Question 28

Predatory(destroyer) pricing

Answer 28

Setting a low price to force rivals out of business

Question 29

Pricing strategy

Answer 29

Pricing policies used by a business, when deciding what to charge for a product

Question 30

Product life cycle

Answer 30

Shows the different stages in the life of a product, and the sales that can be expected at each stage

Question 31

Psychological pricing

Answer 31

Setting the price slightly below a round figure

Question 32

Skimming or creaming

Answer 32

Setting a high price initially, then lowering it later

Question 33

Unit costs

Answer 33

Average cost of producing one product - Total Cost/Output

Question 34

Agent/broker

Answer 34

An intermediary that brings together buyers and sellers

Question 35

Breaking bulk

Answer 35

Dividing a large quantity of goods received from a supplier, before selling them on in smaller quantities to customers

Question 36

Direct selling

Answer 36

Producers selling their products directly to customers

Question 37

Distribution

Answer 37

Delivery of goods from producer to consumer

Question 38

Distribution channel

Answer 38

Route taken by a product from producer to consumer

Question 39

E - commerce

Answer 39

Use of electronic systems to sell goods and services

Question 40

Intermediaries

Answer 40

Links between producer and consumer

Question 41

Retailer

Answer 41

Business that buys goods from manufacturers and wholesalers and sells them in small quantities to consumers

Question 42

Wholesaler

Answer 42

A business that buys goods from manufacturers and sells them in smaller quantities to retailers

Question 43

Boston matrix

Answer 43

A 2 X 2 matrix model that analyses a product portfolio according to the growth rate of the market, and the relative market share of products within the market

Question 44

Extension strategies

Answer 44

Methods used to prolong the life of a product

Question 45

Marketing strategy

Answer 45

A set of plans that aim to achieve a specific marketing objective

Question 46

Product lines

Answer 46

A group of products that are very similar

Question 47

Product portfolio

Answer 47

The collection of products a business is currently marketing