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Business studies > Unit 12 > Flashcards

Unit 12 Flashcards

1
Q

Q1. What is the marketing mix?

A

A1. The marketing mix refers to the four marketing decisions needed for the effective marketing of a product.

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2
Q

Q3. What is a product?

A

A3. A product refers to goods and services produced to satisfy a customer.

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3
Q

Q2. What are the Four Ps?

A

A2. The Four Ps represent having the right product at the right place and right price with the right promotion.

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4
Q

Q4. What is a brand?

A

A4. A brand is a name, image, or symbol that distinguishes a product or service from others.

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5
Q

Q5. What is brand image?

A

A5. Brand image is the general impression of a product held by customers.

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6
Q

Q6. What is the product life cycle?

A

A6. The product life cycle is the pattern of sales of a product from introduction to decline.

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7
Q

Q7. What are extension strategies?

A

A7. Extension strategies are marketing activities aimed at extending the maturity stage of a product.

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8
Q

Q8. What is price?

A

A8. Price is the amount paid by the customer to the supplier when buying goods or services.

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9
Q

Q9. What is product quality?

A

A9. Product quality refers to whether a product meets the needs and expectations of customers.

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10
Q

Q10. What is market skimming?

A

A10. Market skimming is setting a high price for a new product that is unique and unavailable elsewhere.

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11
Q

Q11. What is penetration pricing?

A

A11. Penetration pricing is setting a low price to attract customers.

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12
Q

Q12. What is competitive pricing?

A

A12. Competitive pricing is setting a price similar to that of competitors.

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13
Q

Q13. What is loss-leader pricing?

A

A13. Loss-leader pricing is setting the price of a small number of products low to attract customers, which may lead them to buy other products.

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14
Q

Q14. What is cost-plus pricing?

A

A14. Cost-plus pricing is setting the price according to the cost of making the product.

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15
Q

Q15. What is price leadership?

A

A15. Price leadership occurs when smaller firms set prices based on the dominant firm in the industry.

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16
Q

Q16. What is demand?

A

A16. Demand refers to the quantity of goods and services customers are willing to buy.

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17
Q

Q17. What is price elasticity of demand?

A

A17. Price elasticity of demand measures by how much demand for a product changes due to a change in price.

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18
Q

Q18. What is price inelastic demand?

A

A18. Price inelastic demand occurs when the percentage change in demand is less than the percentage change in price.

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19
Q

Q19. What is revenue?

A

A19. Revenue is the amount earned by a business from the sales of products.

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20
Q

Q20. What is price elastic demand?

A

A20. Price elastic demand occurs when the percentage change in demand is more than the percentage change in price.

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21
Q

Q.21 What are the ways to adapt to changing demand in the market?

A

A.21
1) Develop new products.
2) Change an existing product to meet the changing taste of market.
3) Take an existing product to a new market.

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22
Q

Q.22 What are the Costs of product development?

A

A.22
1) Market research needed.
2) Large capital needed.
3) No guarantee product will be successful.
4) May threaten survival of business.

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23
Q

Q.23 What are the Benefits of new product development?

A

A.23
1) Necessary for survival.
2) More competitive advantage.
3) Increase sales, revenue and profit.
4) Spreads risk.
5) Helps achieve growth and benefits economies of scale.

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24
Q

Q.24 What are the types of pricing methods?

A

A.24
1) Market skimming.
2) Penetration pricing.
3) Promotional pricing.
4) Loss leader pricing.

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25
Q.25 What are the use of pricing method: Market skimming
A.25 Profit earned is very high and can be used to recover the costs of making the product.
26
Q.26 What are the use of pricing method: Penetration pricing
A.26 Low price encourages potential customers to try the product, this leads to customer loyalty after which, prices can be raised.
27
Q.27 What are the use of pricing method: Promotional pricing
A.27 Convinces customers to buy due to low price.
28
Q.28 What are the use of pricing method: Loss leader pricing
A.28 Attracts customers to the store who may also buy other products.
29
Q.29 What are the types of cost-plus pricing?
A.29 Mark-up pricing, Full-cost pricing
30
Q.30 What is the utilization of buy-one-get-one-free pricing?
A.30 A pricing method used to create awareness and develop brand loyalty.
31
Q.31What is the utilization of Discount pricing?
A.31 To create awareness, brand loyalty and sell surplus inventory.
32
Q.32 Explain the factors of marketing skimming: features.
A.32 1) High price to maximum short-run profit. 2) When competitors enter market with similar product, price falls.
33
Q.33 Explain the factors of marketing skimming: Uses.
A.33 New products are unique.
34
Q.34 Explain the factors of marketing skimming: Benefits.
A.34 1) Helps recover research and development cost. 2) Create quality image for products.
35
Q.35 Explain the factors of marketing skimming: Limitations.
A.35 1) Attracts cheaper competitor products. 2) Some potential-customers are not able to buy the product.
36
Q.36 Explain the factors of competitive pricing: Features.
A.36 Price is similar to competitors prices.
37
Q.37 Explain the factors of competitive pricing: Uses.
A.37 1) New products where business already has a brand image. 2) Existing products have previously used price skimming or market penetration.
38
Q.38 Explain the factors of competitive pricing: Benefits.
A.38 Business can compete by improving products.
39
Q.39 Explain the factors of competitive pricing: Limitations.
A.39 1) If market has a price leader, the price leader needs to be followed. 2) Still need to find more ways of competing.
40
Q.41 Explain the factors penetration pricing: Uses
A.41 For new products who have competitors in the market.
41
Q.40 Explain the factors penetration pricing: Features.
A.40 1) Price lower than existing products in market to encourage high sales. 2) Creates customer loyalty, after which price can be raised.
42
Q.42 Explain the factors of penetration pricing: Benefits.
A.42 1) Attracts customers more quickly. 2) Increases market share quickly.
43
Q.43 Explain the factors of penetration pricing: Limitations.
A.43 1) Loss of revenue. 2) Cannot recover costs quickly.
44
Q.44 Explain the factors of cost-plus pricing: Features.
A.44 Set by adding cost of selling products.
45
Q.45 Explain the factors of cost-plus pricing: Uses.
A.45 Used when deciding final price of the product.
46
Q.46 Explain the factors of cost-plus pricing: Benefits.
A.46 1) Quick way to find the price. 2) Makes sure price covers all costs.
47
Q.47 Explain the factors of cost-plus pricing: Limitations.
A.47 Price may be higher than competitors
48
Q.48 Explain the factors of promotional pricing: Featurs.
A.48 Normal price is discontinued below cost.
49
Q.49 Explain the factors of promotional pricing: Uses.
A.49 1) Used by retailers to attracts potential customers. 2) Used to create brand loyalty and image, awareness or sell off surplus inventory.
50
Q.50 Explain the factors of promotional pricing: Benefits.
A.50 1) Good way to sell unwanted inventory. 2) Increases short term sales and market share.
51
Q.53 What are the main roles of packaging.
A.53 1) Protecting the product. 2) Provide information on product. 3) Help consumers recognize product.
52
Q.51 Explain the factors of promotional pricing: Limitations.
A.51 Revenue may be lower.
53
Q.52 What are the ways that allow the increase business's sales and revenue.
A.52 1) Consumers recognize product more easily. 2) Product can be priced higher than less known brands. 3) Easier to launch new products in the market.
54
Q.55 Explain the influence of packaging.
A.55 A well designed packaging will lead potential customers to believe product is of good quality, poor quality packaging will lead potential customers to believe product is of poor quality.
55
Q.54 What are the other purposes of packaging.
A.54 1) Packaging may be used after product has been finished. 2) To keep product fresh once packaging has been opened.
56
Q.56 What are the stages of product lifecycle?
A.56 1) Introduction stage. 2) Growth stage. 3) Maturity stage. 4) Decline stage.
57
Q.57 What does introduction stage mean for products?
A.57 When the product is new to the market.
58
Q.58 What does growth stage mean for products?
A.58 When people are finding out about products.
59
Q.59 What does maturity stage mean for products?
A.59 When the product is completely mature and has the highest sales in the market.
60
Q.60 What does Decline stage mean for products?
A.60 When product begins to lose interest.
61
Q.61 What are the factors involved with the stage of product lifecycle: Introduction?
A.61 1) Low sales, 2) Possible loss, 3) Advertising required.
62
Q.62 What are the factors involved with the stage of product lifecycle: Growth.
A.62 1) Sales increasing. 2) Profit earning begins.
63
Q.63 What are the factors involved with the stage of product lifecycle: Maturity.
A.63 1) Sales at peak, not growing or falling. 2) Most profitable.
64
Q.64 What are the factors involved with the stage of product lifecycle: Decline.
A.64 1) Sales fall. 2) Product becomes unprofitable. 3) Product withdrawn from market.
65
Q.65 Influence of decisions due to product life cycle.
A.65 Each stage of product cycle calls for different decisions and requirements, therefore, decisions about product, pricing, promotion and place need to be decided according to the product lifecycle.
66
Q.66 Factors during the life cycle: Introduction- Product
A.66 Basic model of product.
67
Q.67 Factors during the life cycle: Introduction- Price
A.67 May be lower than competitors.
68
Q.68 Factors during the life cycle: Introduction- Promotion.
A.68 High promotional activity required.
69
Q.69 Factors during the life cycle: Introduction- Place.
A.69 Selected outlets and test markets.
70
Q.70 Factors during the life cycle: Growth- Product.
A.70 Changes may be made to product.
71
Q.72 Factors during the life cycle: Growth- Promotion.
A.72 High promotional activity.
72
Q.71 Factors during the life cycle: Growth- Price.
A.71 Can be increases to similar to competitors prices.
73
Q.73 Factors during the life cycle: Growth- Place.
A.73 Product is more widely available.
74
Q.74 Factors during the life cycle: Maturity- Product
A.74 Extension strategies are implemented.
75
Q.77 Factors during the life cycle: Maturity- Place.
A.77 Available through a wide distribution network.
76
Q.75 Factors during the life cycle: Maturity- Price.
A.75 Price will remain similar to competitors products.
77
Q.78 Factors during the life cycle: Decline- Product.
A.78 Product remains same.
78
Q.76 Factors during the life cycle: Maturity- Promotion.
A.76 Promotional activities aimed at reminding customers about product.
79
Q.79 Factors during the life cycle: Decline- Price.
A.79 May be reduced to sell remaining inventory.
80
Q.80 Factors during the life cycle: Decline- Promotion.
A.80 Advertising lower price of product.
81
Q.81 Factors during the life cycle: Decline- Place.
A.81 Profitable in outlets only.
82
Q.82 What are the factors of choosing pricing method?
A.82 1) New or existing product. 2) Unique qualities of product. 3) Competition in the market. 4) Brand image of the business. 5) Costs of making and supplying product. 6) Marketing objective of the business.
83
Q.84 Explain factor of choosing pricing method: Unique qualities of the product.
A.84 If the product has less substitutes, it may have a high price.
84
Q.83 Explain factor of choosing pricing method: New or existing product.
A.83 new products may be priced lower.
85
Q.85 Explain factor of choosing pricing method: Competition in the market.
A.85 If there are a lot of competitors, it may be priced at the same price as competitors.
86
Q.86 Explain factor of choosing pricing method: Brand image.
A.86 If the business has competitors, but it has a good brand image, that means a high price can be charged.
87
Q.87 Explain factor of choosing pricing method: Costs of making and supplying product.
A.87 Price has to be greater than costs of making sales to earn profit.
88
Q.88 Explain factor of choosing pricing method: Marketing objective of the business
A.88 If the business wants to increase market share by volume of shares, it may charge lower than competitors.

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