TOPIC 4.3: The Marketing Mix

The marketing mix is often referred to as the:

- A) 3 Ps

- B) 4 Ps

- C) 5 Ps

- D) 6 Ps

- E) 7 Ps

4 Ps (Product, Price, Place, Promotion)

Which of the following is NOT one of the 4 Ps of the marketing mix?

- A) Product

- B) Price

- C) Promotion

- D) Profit

- E) Place

Profit

The product life cycle shows:

- A) The cost of producing a product

- B) The stages a product goes through from launch to withdrawal

- C) The price of a product over time

- D) The number of employees needed

- E) The profit made by a product

The stages a product goes through from launch to withdrawal

Which of the following is a stage of the product life cycle?

- A) Research

- B) Introduction

- C) Testing

- D) Branding

- E) Pricing

Introduction

Which pricing strategy involves setting a low price to enter a new market?

- A) Skimming

- B) Penetration

- C) Cost plus

- D) Competition

- E) Promotional

B** - Penetration

Which pricing strategy involves setting a high price initially to target early adopters?

- A) Penetration

- B) Cost plus

- C) Skimming

- D) Competition

- E) Promotional

C** - Skimming

Which pricing strategy involves adding a percentage on top of the cost?

- A) Skimming

- B) Penetration

- C) Cost plus

- D) Competition

- E) Promotional

C** - Cost plus

Place in the marketing mix refers to:

- A) The selling price

- B) The product features

- C) Distribution channels

- D) Advertising methods

- E) Branding

C** - Distribution channels

Which promotion strategy involves a business paying to support an event or organisation?

- A) Advertising

- B) Branding

- C) Sponsorship

- D) Product trials

- E) Special offers

C** - Sponsorship

What is branding?

A) Setting the price of a product

- B) Creating a unique name, symbol, or design to identify a product

- C) Distributing products to retailers

- D) Conducting market research

- E) Reducing costs

B** - Creating a unique name, symbol, or design to identify a product

Above-the-line promotion includes:

- A) Public relations

- B) Viral advertising

- C) Advertising through mass media (TV, radio, newspapers)

- D) Social media marketing

- E) Sponsorship

C** - Advertising through mass media (TV, radio, newspapers)

Below-the-line promotion includes:

- A) Television advertising

- B) Radio advertising

- C) Public relations, product trials, special offers

- D) Newspaper advertising

- E) Magazine advertising

C** - Public relations, product trials, special offers

Which of the following is a use of technology in promotion?

- A) Targeted advertising online

- B) Viral advertising via social media

- C) E-newsletters

- D) All of the above

- E) None of the above

D** - All of the above

The marketing mix is often referred to as the ____ Ps.

4

The stages a product goes through from launch to withdrawal is called the product ____________________ ____________________.

Life cycle

Extension strategies are used during the ____________________ stage of the product life cycle.

Maturity

Setting a low price to enter a new market is called ____________________ pricing.

Penetration

Setting a high price initially to target early adopters is called ____________________ pricing.

Skimming

Distribution channels refer to the ____________________ element of the marketing mix.

Place

What are the 4 Ps of the marketing mix?

Product** - What the business sells

2. Price - How much the product costs

3. Place - Distribution channels

4. Promotion - How the product is advertised

What are the stages of the product life cycle?

Introduction** - Launch with high costs, low sales

2. Growth - Sales increase, competitors enter

3. Maturity - Sales peak, extension strategies used

4. Decline - Sales fall, product withdrawn

What are the main pricing strategies?

Cost plus** - Adding a percentage on top of the cost

- Penetration - Low price to enter a new market

- Competition - Matching competitors' prices

- Skimming - High price initially for early adopters

- Promotional - Temporary price reductions

What is the difference between above-the-line and below-the-line promotion?

Above-the-line** - Advertising through mass media (TV, radio, newspapers, magazines)

- Below-the-line - Direct promotion (public relations, sponsorship, product trials, special offers, branding)

What is the importance of branding?

Differentiates products from competitors

- Builds customer loyalty

- Allows premium pricing

- Creates product recognition

- Adds value to the product