Nordic Tech Solutions, a Swedish software company, launched a new customer relationship management system in 2024. The company invests heavily in physical evidence, such as modern office facilities, to project a professional image.
State two ways a business can use physical evidence in its marketing mix.
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Cloud Nine Electronics, a Canadian smartphone manufacturer, introduced its flagship model in 2024. Its earlier models had relatively short product life cycles. The company invested heavily in research and development before the new product's launch, knowing initial sales would be slow as the market learnt about the product.
Define the term 'product life cycle'.
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Brazilian Coffee Exports noticed declining sales of its premium instant coffee brand in European markets during 2024. The company is considering whether it should discontinue the product and pursue an extension strategy.
Define the term 'extension strategy'.
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Precision Robotics Inc, a Japanese industrial automation company, saw its manufacturing robots reach maturity in the market by late 2024. The company wants to maintain sales levels and is considering pursuing a product-related extension strategy.
State two product-related extension strategies.
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Real Sound, an Indian technology firm, evaluates its home audio products using portfolio analysis. In 2024, Real Sound's flagship surround sound system is its cash cow, maintaining high sales compared to rivals despite slowing industry growth.
Define the term 'cash cow'.
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Melbourne Media Group, an Australian broadcasting company, assessed its content portfolio in 2024. The company needs to make strategic decisions about resource allocation and determine the future of its dog products.
State two strategies for managing dog products.
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Gaberone Retail Stores, a supermarket chain in Botswana, launched its own-brand food products in 2022. These products compete directly with established brands at lower price points.
State two advantages of own-brand products.
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Chennai Electronics Ltd, an Indian manufacturer of home appliances, maintains a consistent cost-plus pricing strategy across its product range.
Define the term 'cost-plus pricing'.
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Frisch, a budget German supermarket chain, is well-known for its low-priced fresh food range, some of which is sold, as loss leaders, at prices much lower than those of major rivals.
Define the term 'loss leader'.
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Pacific Hotels Limited, operating across Asia, monitors competitor prices daily. The company pursues a strategy of competitive pricing, matching or undercutting rivals' room rates to maintain market share.
State two disadvantages of competitive pricing.
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Global Electronics Corporation operates in multiple countries, manufacturing consumer electronics. In 2024, GEC allocated 65% of its marketing budget to above-the-line promotion across major cities.
Define the term 'above-the-line promotion'.
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Sunrise Airlines Limited launched its first international routes in 2024. The company uses above-the-line promotion to attract customers.
State two types of above-the-line promotion.
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Eastern Spice Trading Ltd, a global spice distributor, uses direct marketing to drive sales from restaurants and food manufacturers. The company's marketing team tracks response rates and customer engagement through their customer relationship management system in 2024.
Define the term 'direct marketing'.
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Global Fashion Retail PLC launched several promotional campaigns in 2024 to boost sales. The marketing director wants to implement effective sales promotion techniques.
State two types of sales promotion.
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Alpine Hotels Group implemented several public relations initiatives in 2024 to improve their brand image. The marketing team wants to evaluate the effectiveness of these activities.
State two examples of public relations activities.
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All America Sports Inc implemented a through-the-line promotional campaign in 2024 for their new athletic wear range. The marketing team needs to evaluate the benefits of this approach.
State two advantages of through-the-line promotion.
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Pacific Airlines faced several challenges with their social media marketing strategy in 2024. The marketing director wants to identify potential issues.
State two disadvantages of social media marketing.
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European Foods PLC uses a four-stage distribution channel with traditional wholesalers and retailers. The marketing director wants to evaluate potential issues with this approach.
State two disadvantages of a four-stage distribution channel.
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Portway Services employs over 5,000 customer-facing staff across its retail operations in 2024. The company invests heavily in staff training to create brand ambassadors and ensure positive customer interactions.
Define the term 'brand ambassador'.
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Pacific Airlines experienced several technical issues with their online booking system in 2024. The marketing director wants to identify potential risks caused by poor processes.
State two problems that can arise from poor processes.
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Netflix adjusts its subscription plans regularly, offering a basic plan with advertisements and a premium plan with ultra-HD streaming.
Describe one reason why a business might use tiered pricing strategies.
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Pure Spices Limited specialises in organic spices sourced from local farmers. To grow its market share, the company plans to expand into premium grocery stores with a new product line of luxury spice gift sets. The product design incorporates sustainable packaging, reflecting the company’s commitment to environmental responsibility.
The marketing team is evaluating the product’s place in the marketing mix. They are considering exclusive distribution agreements with upscale grocery chains and a premium pricing strategy to position the spice sets as luxury items. However, Pure Spices faces challenges in balancing these strategies with its mission to support affordability for farmers and sustainability in sourcing.
Explain one advantage and one disadvantage of Pure Spices adopting a premium pricing strategy for its luxury spice gift sets.
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Pure Spices Ltd. specialises in organic spices sourced from local farmers. To grow its market share, the company plans to expand into premium grocery stores with a new product line of luxury spice gift sets. The product design incorporates sustainable packaging, reflecting the company’s commitment to environmental responsibility.
The marketing team is evaluating the product’s place in the marketing mix. They are considering exclusive distribution agreements with upscale grocery chains and a premium pricing strategy to position the spice sets as luxury items. However, Pure Spices faces challenges in balancing these strategies with its mission to support affordability for farmers and sustainability in sourcing.
Analyse two advantages and one disadvantage of using exclusive distribution for Pure Spices’ luxury spice gift sets.
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UrbanRide Scooters is a rental service offering electric scooters in urban areas. The company is launching a new subscription model that provides unlimited scooter usage for a monthly fee. The marketing team is focusing on pricing and promotion as key elements of the marketing mix to attract customers.
The team plans to use a penetration pricing strategy to encourage sign-ups during the launch phase, offering significant discounts for early subscribers. Promotional efforts include social media campaigns targeting young professionals and partnerships with local businesses to advertise the subscription service. UrbanRide must balance the costs of these strategies with the need to build a sustainable revenue model.
Analyse two advantages and one disadvantage of UrbanRide using social media campaigns to promote its subscription model.
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UrbanRide Scooters is a rental service offering electric scooters in urban areas. The company is launching a new subscription model that provides unlimited scooter usage for a monthly fee. The marketing team is focusing on pricing and promotion as key elements of the marketing mix to attract customers.
The team plans to use a penetration pricing strategy to encourage sign-ups during the launch phase, offering significant discounts for early subscribers. Promotional efforts include social media campaigns targeting young professionals and partnerships with local businesses to advertise the subscription service. UrbanRide must balance the costs of these strategies with the need to build a sustainable revenue model.
Describe two below-the-line promotional methods UrbanRide could use to encourage sign-ups for its subscription model.
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Witts Office Supplies is a large retailer specialising in office essentials such as stationery, printers, and office furniture. The company’s primary customers are businesses, and its stores are located on retail parks, offering convenience and easy access.
Witts is planning to launch a new business account service aimed at small and medium-sized enterprises (SMEs). The service will offer bulk discounts, next-day delivery, and dedicated account managers. To ensure the success of this service, Witts is focusing on the people and processes elements of the marketing mix. This includes training staff to handle account-specific requests efficiently and introducing a streamlined order system for bulk purchases.
However, Witts is concerned about maintaining its high service standards while managing the increased demand expected from the new business account customers.
Explain one advantage and one disadvantage of Witts focusing on the people element of its marketing mix for the new business account service.
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Witts Office Supplies is a large retailer specialising in office essentials such as stationery, printers, and office furniture. The company’s primary customers are businesses, and its stores are located on retail parks, offering convenience and easy access.
Witts is planning to launch a new business account service aimed at small and medium-sized enterprises (SMEs). The service will offer bulk discounts, next-day delivery, and dedicated account managers. To ensure the success of this service, Witts is focusing on the people and processes elements of the marketing mix. This includes training staff to handle account-specific requests efficiently and introducing a streamlined order system for bulk purchases.
However, Witts is concerned about maintaining its high service standards while managing the increased demand expected from the new business account customers.
Describe two ways Witts could improve the processes element of its marketing mix to enhance customer satisfaction for its business account service.
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GlowRide is a company that designs and sells high-performance electric bicycles. The business recently launched a new model targeting young urban commuters. To promote the new product, GlowRide is investing in a mix of promotional strategies.
The company has chosen a combination of above-the-line and below-the-line promotions. Television advertisements are used to build brand awareness, while direct marketing campaigns target specific demographics via email and social media. GlowRide is also offering limited-time discounts through its website. The company faces challenges in balancing the high costs of television advertising with the need to generate immediate sales through targeted promotions.
Explain one advantage and one disadvantage of GlowRide using television advertisements as part of its promotional strategy.
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GlowRide is a company that designs and sells high-performance electric bicycles. The business recently launched a new model targeting young urban commuters. To promote the new product, GlowRide is investing in a mix of promotional strategies.
The company has chosen a combination of above-the-line and below-the-line promotions. Television advertisements are used to build brand awareness, while direct marketing campaigns target specific demographics via email and social media. GlowRide is also offering limited-time discounts through its website. The company faces challenges in balancing the high costs of television advertising with the need to generate immediate sales through targeted promotions.
Analyse two advantages and one disadvantage of GlowRide combining above-the-line and below-the-line promotions for its new model.
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Fresh Paws is a small company specialising in premium pet products, including organic pet food and eco-friendly accessories. To promote a new line of high-quality pet grooming products, Fresh Paws is investing in public relations (PR) and social media campaigns.
The PR campaign includes partnerships with animal shelters to promote adoption events, where Fresh Paws provides free samples of its grooming products. On social media, the company is collaborating with popular pet influencers to showcase the benefits of its grooming line. Fresh Paws aims to build brand trust and create buzz among pet owners, but it faces challenges measuring the impact of these promotional activities.
Explain one advantage and one disadvantage of Fresh Paws using public relations to promote its grooming products.
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Fresh Paws is a small company specialising in premium pet products, including organic pet food and eco-friendly accessories. To promote a new line of high-quality pet grooming products, Fresh Paws is investing in public relations (PR) and social media campaigns.
The PR campaign includes partnerships with animal shelters to promote adoption events, where Fresh Paws provides free samples of its grooming products. On social media, the company is collaborating with popular pet influencers to showcase the benefits of its grooming line. Fresh Paws aims to build brand trust and create buzz among pet owners, but it faces challenges measuring the impact of these promotional activities.
Describe two promotional methods Fresh Paws could use to generate enthusiasm for its grooming products.
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CityFit operates a chain of leisure centres offering gym facilities, swimming pools, and group fitness classes. To attract more members, CityFit is launching a promotional campaign for its family membership plan. The campaign focuses on sales promotions, such as free trial classes for families and discounts for signing up during the launch period.
CityFit is also leveraging direct marketing by sending personalised emails to potential customers in nearby areas, highlighting the benefits of the family plan. The company aims to increase memberships quickly but faces challenges in maintaining the value perception of its services while offering discounts.
Analyse two advantages and one disadvantage of CityFit using direct marketing to promote its family membership plan.
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CityFit operates a chain of leisure centres offering gym facilities, swimming pools, and group fitness classes. To attract more members, CityFit is launching a promotional campaign for its family membership plan. The campaign focuses on sales promotions, such as free trial classes for families and discounts for signing up during the launch period.
CityFit is also leveraging direct marketing by sending personalised emails to potential customers in nearby areas, highlighting the benefits of the family plan. The company aims to increase memberships quickly but faces challenges in maintaining the value perception of its services while offering discounts.
Describe two ways CityFit could improve its promotional strategy to increase sign-ups for the family membership plan.
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