UNIT 3 - Chap 12: The Marketing Mix: Product

Question 1

What is the definition for the marketing mix?

​

Answer 1

Is a term which is used to describe all the activities which go into marketing a product or service. These activities are known as the four Ps.​

Question 2

What are the 2 benefits of the marketing mix a new product? (2)

Answer 2

1. Will give the Business a USP (Unique selling point)
2. Allows the business to expand into new and existing markets e.g., new Countries, the vegan market

Question 3

What are the 3 drawbacks of the marketing mix product? (3)

Answer 3

1. The business will have to carry out Market research before launching a new product- this is expensive
2. The brand image could be damaged if the company fails to meet customer needs with the new product
3. The cost of producing trial products is expensive​

Question 4

What is the definition of brand image?

Answer 4

Is an image or identity given to a product which gives it a personality of its own and differentiate it from competitors. ​

Question 5

What are the 3 benefits of a strong brand image? (3)

Answer 5

1. By having a strong brand image, this will give the business a USP.​
2. Customers are more likely to be loyal towards your business over competitors. This will lead to an increase in sales. ​
3. A strong brand image may also allow the business to charge a premium price ​

Question 6

What are the 2 reasons for the role of packing? (2)

Answer 6

1. It has to be suitable for the product to be stored in e.g. keeping it fresh
2. Packaging is also used for promoting the product e.g., to attract customer’s attention

Question 7

What are the 6 product life cycle stages? (6)

Answer 7

1. Development
2. Introduction
3. Growth
4. Maturity
5. Saturation
6. Decline

Question 8

Explain what development is?

Answer 8

The market research is carried out and the prototype is tested before the product is launched. There are 0 sales at this stage​

Question 9

Explain what introduction is?

Answer 9

Sales are low at first as consumers are not aware of the product . Lots of capital is spent on advertising the product. No profits are made yet as sales are low and the revenue does not cover the development costs

Question 10

Explain what growth is?

Answer 10

Sales grow rapidly. Prices are usually high as it is still a ‘new’ product. Profits start to be made​

Question 11

Explain what maturity is?

Answer 11

Competition becomes intense, and sales only increase slowly. Prices are reduced to gain competitive advantage. A lot of advertising is used to maintain sales and profits are at there highest at this stage ​

Question 12

Explain what satuation is?

Answer 12

Competition is high and prices have to be reduced to compete with them. Profits begin to fall. Advertising may be high if the business tries to bring in an extension strategy.

Question 13

Explain what decline is?

Answer 13

Sales decrease as competition is extremely high and the product may have gone out of fashion. The product is usually withdrawn from the market at this stage. ​

Question 14

What is the extension strategy?

Answer 14

It is in order to extend the life cycle of a product so it remains at the maturity/saturation stage

Question 15

What are the 5 types of the extension strategy? (5)

Answer 15

1. Sell to new markets E.g. other countries ​
2. Modify the packaging e.g., colour/labels​
3. Use a new advertising campaign​
4. Introduce a new improved version of the old product e.g. new flavours, new specification​
5. Sell through additional retail outlets