U2 AOS2 KK5 Marketing Mix Part 1

Question 1

Define Marketing Mix.

Answer 1

The elements of a firm’s approach to marketing that enable it to satisfy and delight its customers.

Question 2

List the 7 Ps in the Marketing Mix.

Answer 2

Price
Product
Promotion
Place
People
Process
Physical Environment

Question 3

What does ‘Product’ include?

Answer 3

Product includes the physical features and specifications of the product - what it looks like, how reliable it is, quality of the product, etc.

Question 4

What are the 7 key features a product should possess to ensure that it appeals to the needs of the target market?

Answer 4

1. Functionality
2. Reliability
3. Durability
4. Appearance / aesthetic qualities
5. Convenient to use / ergonomic
6. Suitable packaging
7. Fashionable / in keeping with social trends.

Question 5

What does ‘Price’ refer to?

Answer 5

The way the product is priced and the rationale behind it.

Question 6

Identify 5 factors businesses need to consider when deciding how to price a product.

Answer 6

1. Competitors products and prices
2. Cost of production
3. Market conditions
4. Product quality and packaging
5. Market share

Question 7

List 4 price strategies businesses can use

Answer 7

1. Price skimming
2. Penetration pricing
3. Competition based pricing
4. Cost plus pricing

Question 8

Identify the correct pricing strategy:

A business sets a price similar to its competitors’ prices. It may be set just below or just above – very useful in competitive industries.

Answer 8

Competition based pricing

Question 9

Identify the correct pricing strategy:

A business offers a lower price during its initial product offering. The lower price helps a new product or servicepenetrate the marketand attract customers away from competitors.

Answer 9

Penetration pricing

Question 10

Identify the correct pricing strategy:

A business determines the products price by taking the unit cost and adding a percentage markup to determine the selling price.

Answer 10

Cost plus pricing

Question 11

Identify the correct pricing strategy:

A firm charges the highest initial price that customers will pay and then lowers it over time.

Answer 11

Price skimming

Question 12

What does ‘Place’ refer to?

Answer 12

Place refers to where the product will be sold.

Question 13

What are three considerations relating to product placement?

Answer 13

Where will people be looking for your product?
Will they need to hold it in their hands or try it on?
Will you use third party sellers?

Question 14

What does ‘Promotion’ refer to?

Answer 14

Promotion refers to how the product will be advertised.

Question 15

List six different ways that a business can promote its product.

Answer 15

Television ads
Print ads
Content marketing
Coupons
Scheduled discounts
Social media advertising
Email marketing
Google ads
Youtube ads
Billboards
Sponsorship advertising
Direct marketing
Merchandising