Unit 3.4- Marketing mix

Question 1

What is the marketing mix?

Answer 1

combination of marketing decisions that influence a customer’s decision to buy

Question 2

What are the 7 p’s

Answer 2

• Price
• Place
• Promotion
• Physical environment
• People
• Product
• Process

Question 3

What are the internal influences on the marketing mix?

Answer 3

• financial position
• staff
• operations
• objectives

Question 4

What are the external influences on the marketing mix?

Answer 4

• Political and Legal factors - new legislation
• Economic factors - growing economy
• Social factors - greater environmental concerns
• Technological factors - online promotion
• Competition

Question 5

What is an consumer product?

Answer 5

Consumer products are bought by customers (B2C)

Question 6

What is an industrial product?

Answer 6

Industrial products are sold to businesses which use them in their own processes (B2B)

Question 7

What are the 3 sub categories for consumer products?

Answer 7

• Convenience items - such as milk and bread widely distributed
  Shopping goods - products where customers compare features and price
  Speciality products - such as a sports car or Rolex,

Question 8

What does product consist of?

Answer 8

• The core benefit it provides
• The tangible product - refers to the features such as its specifications, its reliability and its design.
• The augmented product

Question 9

What are the 5 sections of a product life cycle?

Answer 9

• Research and development
• Introduction
• Growth
• Maturity
• Decline

Question 10

What are some extension strategies?

Answer 10

• Increase promotional expenditure to renew interest in the product or to increase usage
• Revamp the product in some way - new packaging/flavours
• Find new target market segments - new countries
• Find new usage

Question 11

What are the 4 sections of the boston matrix called?

Answer 11

• Dog
• Star
• Question mark
• Cash cow

Question 12

What does a dog have?

Answer 12

Low market share

Low market growth

Question 13

What does a question mark have?

Answer 13

High market growth

Low market share

Question 14

What does a cash cow have?

Answer 14

Low market growth

High market share

Question 15

What does a star have?

Answer 15

High market growth

High market share

Question 16

Why would you need new product development?

Answer 16

• The existing products are coming to the end of their life cycle
• New opportunities are opening up due to changes in the market
• There is a desire to build on the strengths of the brand
• It is a way of achieving growth
• To match what competitors are doing

Question 17

What is new product development?

Answer 17

involves investment to modify an existing product or replace it with a new one.

Question 18

What are the influences on pricing decisions?

Answer 18

• Cost
• price elasticity of demand
• Positioning
• Stage of the products life cycle
• Other elements of the marketing mix
• Competitiveness of the environment

Question 19

What are the 8 pricing strategies?

Answer 19

• Price skimming
• Penetration pricing
• Cost plus pricing
• Loss leader pricing
• Competitive pricing
• Dynamic pricing
• Psychological pricing
• Premium pricing

Question 20

What are some promotional method?

Answer 20

• Advertising
• Direct marketing
• Public relations
• Packaging
• Branding
• Sponsorship
• Sales promotion
• Loyalty cards

Question 21

What affects what promotional method a business may use?

Answer 21

Target audience
Promotional budget
The message 
Technology 
Positioning 
Competitive environment

Question 22

What is meant by a brand and why is it so important?

Answer 22

A brand is a promise to deliver certain benefits and services.

Question 23

When making distribution decisions a manager will look at?

Answer 23

• The degree of coverage
• Costs
• Nature of the product
• The control over the product’s price and promotion
• Customers expectations

Question 24

What is e-commerce?

Answer 24

The buying and selling of products through an electronic device such as the internet.