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What is meant by the term design mix?
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What is meant by the term design mix?
The design mix is the combination of elements that make up a product's design, including function, aesthetics and cost.
True or False?
Distribution channels are a key element of product within the marketing mix.
False.
Distribution channels are a key element of place within the marketing mix.
Define the function element of the design mix.
Function refers to the intended purpose and the specific tasks a product is designed to perform.
True or False?
A product's function is the most important aspect of its design.
True.
A product's function is the most important aspect of its design because it determines how well the product will meet the needs of its intended users.
Define the term aesthetics.
Aesthetics refers to the product's visual and sensory appeal, including its form, shape, colour and texture.
What does cost refer to in the design mix?
Cost refers to the cost of production, which directly affects the price point at which the product can be sold.
State the 4 P's of the marketing mix.
Product
Price
Place
Promotion
What is meant by the term ethical sourcing?
Ethical sourcing means that products are produced using raw materials not gained from the exploitation of workers or environmental damage.
Define the term unique selling point (USP).
A unique selling points (USP) is a feature or capability that makes a product stand out from rivals.
True or False?
Public relations are a key element of promotion within the marketing mix.
True.
Public relations are a key element of promotion within the marketing mix.
Define the term promotion.
Promotion is the set of activities that raise awareness, generate interest, and create a desire for a product amongst customers.
Define the term sponsorship.
Sponsorship is an agreement in which a company provides financial or other support to an event, team or cause in exchange for marketing exposure.
What is meant by the term advertising?
Advertising is a form of promotion that occurs through paid channels such as television, radio, print media, and online advertising.
State the meaning of direct marketing.
Direct marketing involves communicating directly with customers through email, text message, social media, or post.
True or False?
Sales promotions can quickly boost sales or customer engagement.
True.
Sales promotions can quickly boost sales or customer engagement.
What is personal selling?
Personal selling involves a salesperson interacting with potential customers one-on-one, either in person or through digital communication channels.
Define the term corporate branding.
Corporate branding refers to the use of a company name or logo to promote all the products offered by the company.
What is meant by the term public relations (PR)?
Public relations (PR) involves a business building relationships with the public and managing its reputation.
True or False?
Digital communications can be highly targeted at specific customer segments.
True.
Digital communications can be highly targeted to specific customer segments.
Define the term branding.
Branding is the process of creating a unique and identifiable name, design, symbol or other feature that differentiates a product or company from rivals.
What is cost-plus pricing?
Cost-plus pricing involves calculating the cost of production and then adding a markup to determine the final price.
Define the term price skimming.
Price skimming involves setting a high price for a new product when it is first introduced to the market, then gradually lowering it over time.
State the meaning of the term penetration pricing.
Penetration pricing involves setting a low price for a new product when it is first introduced in order to gain market share quickly.
True or False?
Predatory pricing is legal in many countries.
False.
Predatory pricing is illegal in many countries as it is considered anti-competitive and harms customers by reducing their choice in the market.
What is meant by competitive pricing?
Competitive pricing involves setting prices based on those of competitors.
Define the term psychological pricing.
Psychological pricing is a pricing strategy that takes into account the customer's emotions, beliefs and attitudes towards the product.
State the meaning of the term price elasticity of demand.
Price elasticity of demand refers to the responsiveness of demand for a product to a change in its price.
True or False?
Businesses should increase prices if the product is price elastic.
False.
Businesses should set lower prices if the product is price elastic as this will increase total revenue.
What is meant by the term dynamic pricing?
Dynamic pricing involves adjusting prices in real-time based on factors such as demand and competition, e.g. prices are higher when demand is higher and vice versa.
True or False?
In highly competitive markets businesses set their prices high to remain competitive
False.
In highly competitive markets, businesses may need to set their prices low to remain competitive
Name the stages in a four-stage distribution channel.
A four-stage distribution channel consists of:
Producer
Wholesaler
Retailer
Consumer
What is meant by the term distribution channel?
A distribution channel refers to the intermediaries through which products move from the manufacturer to the end customer.
Which two intermediaries are in a two-stage distribution channel?
A two-stage distribution channel involves a producer selling directly to the end consumer.
True or False?
A three-stage distribution channel is often used for products with high demand or where the distribution cost is high.
True.
A three-stage distribution channel is often used for products with high demand or where the distribution cost is high.
What is meant by the term drop-shipping?
Drop-shipping occurs when a business takes an order for a product and then requests that the producer ship it directly to the customer. It allows businesses to avoid holding stock.
What are third-party logistics providers (3PLs).
Third-party logistics providers (3PLs) provide businesses with the infrastructure and online marketplace to reach a wide audience without having to invest in their own distribution infrastructure, e.g. Amazon
True or False?
Distribution for service-based businesses may involve delivering services to customers directly, without the need for wholesalers or retailers.
True.
Distribution for service-based businesses may involve delivering services to customers directly, such as through a mobile app or website, without the need for wholesalers or retailers.
State the meaning of the term e-commerce.
E-commerce refers to the buying and selling of products over the internet.
True or False?
The four-stage distribution channel is most often used for products that are sold online.
False.
The two-stage distribution channel is most often used for products that are sold online
Define the term wholesaler.
A wholesaler is a business that buys large quantities of goods and sells them in smaller amounts to retailers.
What is the product life cycle?
The product life cycle describes the different stages a product goes through, from its conception to its eventual decline in sales.
Name the five stages of the product life cycle.
The five stages of the product life cycle are:
Development
Introduction
Growth
Maturity
Decline
Why are business costs high during the development stage of the product life cycle?
Costs are high during the development stage because a business is engaged in expensive research and development, market research, and product testing.
True or False?
A product's sales are at their peak during the growth stage of the product life cycle.
False.
A product's sales are at their peak during the maturity stage of the product life cycle.
True or False?
Cash flow is usually positive during the maturity stage of the product life cycle.
True.
Cash flow is usually positive during the maturity stage of the product life cycle as sales revenue continues to grow and costs are reduced through economies of scale.
What is an extension strategy?
Extension strategies refer to the techniques used by businesses to extend the life of a product beyond its natural life cycle.
What is a product-related extension strategy?
A product-related extension strategy involves changing or modifying a product to make it more appealing to customers.
True or False?
Black Friday is an example of a product-related extension strategy
False.
Black Friday is an example of a promotion-related extension strategy
What is meant by the term obsolete?
Obsolete is a way to describe a product that has been replaced by newer models, is unfashionable, or is no longer useful.
True or False?
A loyalty card is an example of a promotion-based extension strategy.
True.
A loyalty card is an example of a promotion-based extension strategy.