Marketing, competition and the customer
Product
Price
Place
Promotion
Marketing technology and strategy
100
What is 'customer loyalty'?
A) Customers regularly buying from different brands
B) Customers preferring and consistently buying from the same brand
C) Customers avoiding a particular brand
D) Customers using multiple brands equally
B) Customers preferring and consistently buying from the same brand
100
What does the term 'product' refer to in the marketing mix?
A) The price of the item
B) The place where the item is sold
C) The goods or services offered to customers
D) The promotional activities for the item
C) The goods or services offered to customers
100
What is the main objective of pricing strategies?
A) To increase production costs
B) To reduce product quality
C) To complicate the purchasing process
D) To attract and retain customers
D) To attract and retain customers
100
What does 'place' refer to in the marketing mix?
A) The distribution channels used to deliver the product to customers
B) The promotion of the product
C) The price of the product
D) The features of the product
A) The distribution channels used to deliver the product to customers
100
What is the main objective of promotion in the marketing mix?
A) To determine the price of the product
B) To identify the distribution channels
C) To inform, persuade, and remind customers about a product
D) To manage the production process
C) To inform, persuade, and remind customers about a product
100
How has technology influenced the 'place' aspect of the marketing mix?
A) By reducing product quality
B) By increasing production costs
C) By limiting market reach
D) By enabling online sales and distribution channels
D) By enabling online sales and distribution channels
200
What does a market-oriented business focus on?
A) Customer needs and wants
B) Production processes
C) Employee satisfaction
A) Customer needs and wants
200
What does the product life cycle include?
A) Market research and development
B) Introduction, growth, maturity, decline
C) Production and distribution
D) Promotion and pricing
B) Introduction, growth, maturity, decline
200
What does 'penetration pricing' aim to achieve?
A) Maximize short-term profits
B) Establish a high-quality brand image
C) Enter a market quickly and gain market share
D) Limit production costs
C) Enter a market quickly and gain market share
200
Which of the following is a direct distribution channel?
A) Manufacturer to wholesaler to retailer to consumer
B) Manufacturer to retailer to consumer
C) Manufacturer to agent to wholesaler to retailer to consumer
D) Manufacturer to consumer
D) Manufacturer to consumer
200
Which promotional method involves face-to-face interaction with potential customers?
A) Public relations
B) Direct marketing
C) Personal selling
D) Sponsorship
C) Personal selling
200
Which of the following is a benefit of using social media for promotion? Why and/or how?
A) Direct engagement with customers
B) Limited audience reach
C) High cost of advertising
D) Difficulty in measuring impact
A) Direct engagement with customers
300
Competitive pricing involves:
A) Setting prices based on production costs
B) Setting prices higher than competitors
C) Setting prices similar to or slightly lower than competitors
D) Setting prices without considering competitors
C) Setting prices similar to or slightly lower than competitors
300
What role does packaging play in the marketing of a product?
Answer: Packaging plays a crucial role in the marketing of a product as it protects the product, provides important information, enhances the product’s appearance, and can influence customer purchasing decisions. It also helps in branding and can be used to convey the quality and value of the product.
300
What is psychological pricing?
A) Setting prices based on the cost of production
B) Setting prices to create a perception of value
C) Setting the highest possible price for a product
D) Setting prices the same as competitors
B) Setting prices to create a perception of value
300
What factors should a business consider when selecting a distribution channel?
Answer: A business should consider factors such as the nature of the product (perishable or non-perishable), target market preferences, cost implications, speed of delivery, level of control desired over the marketing process, and the geographical reach required. These factors help in choosing the most efficient and effective distribution channel.
300
Why is a promotional mix important for a business?
Answer: A promotional mix is important because it allows a business to use a combination of promotional methods to reach its target audience effectively. By integrating different promotional tools like advertising, sales promotion, public relations, and personal selling, businesses can create a cohesive strategy that maximizes impact, caters to various customer preferences, and achieves marketing objectives.
300
What are some advantages of using digital marketing over traditional marketing methods?
Answer: Advantages of digital marketing include cost-effectiveness, broader reach, ability to target specific demographics, real-time data and analytics, personalized marketing, and higher engagement rates. Digital marketing also allows for immediate feedback and adjustments to campaigns.
400
Why is it important for businesses to adapt to changing customer preferences?
It is important for businesses to adapt to changing customer preferences to remain relevant and competitive in the market. By staying attuned to customer needs and adjusting their products, services, and marketing strategies accordingly, businesses can better satisfy their customers, maintain their market share, and foster customer loyalty.
400
How can businesses extend the product life cycle?
Answer: Businesses can extend the product life cycle by implementing strategies such as product modifications, rebranding, exploring new markets, enhancing features, adjusting pricing strategies, increasing promotional efforts, and adding new uses or applications for the product.
400
Describe the advantages and disadvantages of competitive pricing.
Answer:
- Advantages: Competitive pricing helps a business attract price-sensitive customers, remain competitive in the market, and avoid price wars.
- Disadvantages: It may lead to reduced profit margins and can be challenging to maintain if competitors lower their prices further. It may also result in a lack of differentiation from competitors.
400
Explain the advantages and disadvantages of using wholesalers in the distribution channel.
Answer:
- Advantages: Wholesalers can buy in bulk, reducing the need for manufacturers to handle small orders. They provide storage facilities, reducing inventory costs for manufacturers. Wholesalers also help in expanding market reach by distributing products to various retailers.
- Disadvantages: Using wholesalers can reduce profit margins for manufacturers since wholesalers take a cut. It may also result in less control over the final marketing of the product and potential delays in reaching the consumer.
400
What are the aims of promotion? Mention at least 3 and explain them.
To inform people about particular issues, often used by government
To introduce new products onto the market
To compete with competitors’ products
To create a brand image
To increase sales
To improve the company image
400
Define ‘e-commerce’. Identify two disadvantages to customers of buying on the internet.
e-commerce is the ‘online’ buying and selling of goods and services using computer systems linked to the internet and apps on mobile (cell) phones.
Disadvantages: reduced internet access, cannot see/feel products, identity theft, technical problems, no personal contact.
500
Explain the concept of a 'niche market.' Give examples.
A niche market is a smaller, specialized segment of a larger market that has specific needs and preferences.
500
Look at the following chart and classify the goods and services. Add two more examples per category.
Consumer goods: Tube of toothpaste, pair of sports shoes, chocolate bar
Consumer service: Bank account, doctor's treatment of a patient, television programme
Producer good: Bottle filling machine, purchase of a hospital bed
Producer service: Bank account, office cleaning, factory building
500
Which conditions can influence pricing decisions? How?
Answer: Market conditions such as supply and demand, competition, economic climate, and consumer trends can significantly influence pricing decisions. For example, high demand and low supply can justify higher prices, while intense competition might necessitate lower prices to attract customers. Economic downturns may require more affordable pricing to appeal to cost-conscious consumers.
500
Look at the following pictures and name each distribution method: Independent retailers - Chain stores - Mail order - Supermarkets - Discount stores - Superstores - Direct sales.
Explain your four choices. Give one more example for each.
Farmacity: Chain store
Ross: Discount store
El Almacen: Independent retailer
Apple: Direct sales
500
Choose three of these advertising media. Mention an advantage, a disadvantage, and an example of a good or service that should be advertised this way.
TELEVISION, RADIO, MAGAZINES, NEWSPAPERS, POSTERS/BILLBOARDS, CINEMA, LEAFLETS, INTERNET
Ss' own answers.
500
Mention and explain two possible problems of entering foreign markets. Then mention and explain two ways to overcome the problems of entering new markets abroad.
Problems: Lack of knowledge, Cultural differences – Exchange rate changes - Import restrictions - Increased risk of non-payment - Increased transport costs
Solutions: Joint ventures - Licensing - International franchising - Localising existing brands