Vocab Ch. 19
What is the Marketing Mix?
When all elements—product, price, place, and promotion—work together to present a consistent strategy and message.
The manufacturer (e.g., Coca-Cola) sells huge truckloads to a regional wholesaler, who breaks it down and sells cases to various local grocery stores, convenience stores, and vending machine operators (the retailers), who then sell single cans or bottles to you, the consumer is an example of...
Two-Intermediary channel distribution
After learning a client struggles with inefficient data reporting (discovery), the salesperson demonstrates their software's analytics dashboard, showing how it automates reports, saving hours weekly (value proposition), leading to the client signing up to resolve their immediate operational pain (closing). What is this a scenario of?
Professional Selling
Define the term E-commerce [1]
What Assessment Objective is being asked?
AO1 (Knowledge)
What is Sales Promotion?
When businesses create short-term sales and discounts to receive high demand quickly to purchase products/services.
What is the Unique Selling Point (USP)?
The special features of a product that makes it different from competition.
PepsiCo’s support enabled the NFL to extend the show from one 12-minute performance to a much larger platform. This meant that the NFL was able to expand the show’s reach, while PepsiCo was able to promote its products to a wider audience, is an example of...
Sponsorship
GreenTech prices "Aura" at an initial introductory price of $8.99 for the same 40-load container (roughly 40% cheaper than competitors). Their production costs allow for a nominal profit margin at this volume, which is a key requirement for the strategy to be sustainable. What is this a scenario of?
Penetration Pricing
Explain one way that a business uses digital distribution. [3]
What Assessment Objective is being asked?
AO2 (Knowledge and Application)
What is a trade fair?
Where businesses promote their products/services in an exhibition.
What is Cost-plus pricing?
A pricing strategy where a business determines the selling price of a product by calculating the total unit cost (including all fixed and variable costs) and then adding a fixed profit margin, or "markup," on top.
Airline tickets, where prices change constantly based on demand, booking time, route popularity, and competitor pricing, with higher costs for peak times like holidays or last-minute flights, is an example of...
Dynamic Pricing
If BrewMaster sells 800 units in a month, their total contribution is $72,000 ($90 * 800 units). After subtracting the $50,000 in fixed costs, they make a profit of $22,000 for the month. What is this a scenario of?
Contribution-cost pricing
Analyse two benefits to using single-intermediary channel distribution. [8]
What Assessment Objective is being asked?
AO3 (Knowledge, Application, and Analysis/Impacts)
What is Direct Selling?
Selling goods or services straight to the end-user without intermediaries like retail stores or wholesalers.
What is Market Skimming?
Setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand.
Domino's "30 Minutes or It's Free" guarantee, which promised speed and risk-free quality, turning pizza delivery into a reliable service, is an example of...
Unique Selling Point (USP)
A customer sees the price $199.99 and psychologically anchors to the first number, perceiving the cost as closer to $100 rather than $200, or at least a "great deal" just under the next dollar amount. This subtle difference makes the purchase feel more attractive and the bag appear more valuable than its price tag might otherwise suggest. What is this a scenario of?
Psychological Pricing
Analyse two reasons why a business should use Guerrilla Marketing. [8]
What Assessment Objectives are being asked?
AO3 (Knowledge, Application, Pro/Cons, Analysis/Impacts)
What is a promotion mix?
Marketing tools that a company uses to promote a product to their larger audience.
What are Loss Leaders?
Pricing under-performing products at below cost with the hope that customers will also buy other products that do contribute towards the cost of the operation.
Domino's "Paving for Pizza," where they fixed potholes in towns across the U.S. to prevent toppings from shifting, turning a common customer complaint into positive PR by literally paving roads, is an example of...
Guerilla Marketing
A tech startup, after a product glitch caused user frustration, quickly issued a heartfelt apology video from the CEO, shared transparent bug-fix updates on social media, and offered free premium features to affected users, turning a potential PR crisis into a demonstration of customer care and brand loyalty. This multi-pronged approach, using social media for dialogue and direct outreach for service recovery, rebuilt trust and generated positive word-of-mouth. What is this a scenario of?
Public Relations
‘The Marketing Mix is essential to create a successful business’ Evaluate this view. [12]
What Assessment Objective is being asked?
AO4 (Knowledge, Application, Pro/Cons, Analysis/Impacts, Evaluation)
What is the Product Life Cycle? What are the 4 stages?
The length of time from a product first being introduced to consumers until it is removed from the market. The 4 stages include Introduction, Growth, Maturity, and Decline.