InThinking Revision Sites

INTHINKING REVISION SITES

Own your learning

Why not also try our independent learning self-study & revision websites for students?

We currenly offer the following DP Sites: Biology, Chemistry, English A Lang & Lit, Maths A&A, Maths A&I, Physics, Spanish B

"The site is great for revising the basic understandings of each topic quickly. Especially since you are able to test yourself at the end of each page and easily see where yo need to improve."

"It is life saving... I am passing IB because of this site!"

Basic (limited access) subscriptions are FREE. Check them out at:

www.StudyIB.net

Appropriate marketing mixes

  • /
  • Unit 4 - Marketing/
  • 4.5 The seven Ps of the marketing mix/
  • Appropriate marketing mixes

Appropriate marketing mixes for particular products or businesses (AO3)

Goods are physical products, such as handbags, cars, and laptops. Services are intangible products, such as education, haircuts, and train rides. The marketing of physical goods varies from the marketing of intangible services. The marketing of goods involves the traditional marketing mix (product, price, promotion, and place).

Marketers have to ensure the needs and wants of their customers are satisfied by providing suitable products, distributed in the most appropriate places to ensure customer have ease of access to them, ensure adequate awareness and desire to purchase the products through effective promotion, and determine suitable prices to sell their products.

The marketing of services, developed by Bernard H. Booms and Mary J. Bitner (1981), includes three additional elements to the marketing mix: people, process, and physical evidence.

  • Product – a physical good or an intangible service that is provided by a business.

  • Price – the value of a good or service that is paid for by the customer.

  • Promotion – marketing processes used to inform customers about a product and persuade them to buy the product.

  • Place – the plans and processes of getting the right products to the right customers at the right time.

  • People – the importance of employee-customer relationships in the marketing of a service.

  • Processes – the importance of delivery processes in the marketing of a service.

  • Physical evidence – the importance of tangible physical evidence in the marketing of a service.

The marketing mix refers to all the marketing activities that have a direct or indirect influence on whether a customer decides to buy a particular good or pay for a certain service. It also impacts whether the experience that customers have, thereby determining whether they will return to buy the product again.

An effective marketing mix, be it the traditional 4 Ps for the marketing of goods or the 7 Ps for the marketing of services, helps to ensure that a business meets the needs of their customers. Getting the marketing mix right requires an integrated approach, i.e., all elements of the 7 Ps are complementary (work together) and consistent (reinforce each other). This means the business produces the right product, sells it for the right price, informatively and persuasively communicates the product through the right methods of promotion, and has the product conveniently available at the right place for customers. In addition, the people are appropriate trained in delivering a service, with the right processes to provide quality service, and tangible physical evidence to ensure customer satisfaction.

The marketing mix is an integrated approach to meet the needs and wants of customers

For example, a 5-star hotel with its attractive physical environment (physical evidence) will not meet the needs and wants of customers if there is poor customer service and long delays at the check-in counter. In this case, the people and process elements of the marketing mix do not match the price and physical evidence components of the marketing mix. Similarly, people would not be willing to pay high prices for fast food in a food court of a shopping mall because the price, physical evidence, and product aspects of the marketing mix do not match.

Essentially, the different elements of the marketing mix (4 Ps for goods or 7 Ps for services) must complement each other. The marketing strategies behind the 4 Ps or 7 Ps must also work to reinforce the brand value of the product and/or the business.

In summary:

  • All elements in the marketing mix must be effectively executed in order a business to succeed. An outstanding product that is not promoted well or is incorrectly priced or poorly distributed will fail to sell well.

  • Measures of the effectiveness of a marketing mix include the impact on sales revenues, brand recognition, customer loyalty, market share, and profits.

  • An effective marketing mix enables a business to achieve its marketing objectives, e.g., increased market share, better product positioning, and improved consumer satisfaction.

 Business Management Toolkit - SWOT analysis

Explain how a SWOT analysis can support the formation of an improved marketing strategy.

  Business Management Toolkit - Ansoff matrix

Discuss the importance of understanding Ansoff's matrix when developing an appropriate marketing mix for a product or a business organization.

 Business Management Toolkit - The Boston Consulting Group matrix

Discuss how knowledge of the product portfolio analysis and the Boston Consulting Group matrix can support marketing managers to develop appropriate marketing mixes.

Business Management Toolkit - STEEPLE analysis

Discuss the importance of understanding the external environment when developing an appropriate marketing mix for a product or a business.

You may find it useful to refer to STEEPLE analysis prior to answering this question.

 Key concept - Ethics

Using real-world examples, discuss the ethical considerations that may influence marketing practices and strategies in business organizations.

 Teacher only box

Possible ethical considerations could include a discussion of:

  • Marketing ethics are the moral aspects of a firm’s marketing practices and strategies. Unethical marketing happens when moral codes of practice are ignored or when marketing activities (such as market research or advertising campaigns) cause offence to the public.

  • Marketing practices and strategies that ignore ethical considerations are likely to result in negative consequences for a business, e.g., customer complaints, damaged corporate image and a public relations disaster.

  • The use of unethical marketing, deliberate or unintentional, is a high-risk strategy that can backfire. With the widespread use of social media and social networks, bad publicity is not necessarily better than no publicity for a business.

Examples of unethical marketing practices and strategies include the following:

  • Bait and switch - marketing methods aimed at luring customers by using advertising deals that are just too good to be true (the bait) who become hooked but find that the product is no longer available so end up buying a more expensive alternative (the switch).

  • advertising claims - using unproven or untested claims that can mislead and deceive the public, e.g., promoting health benefits and medical cures from the consumption of certain uncertified products.

  • Product misrepresentation - giving misleading and ambiguous information to customers in order to persuade them to pay for certain goods or services, e.g., inaccurate product descriptions.

  • Pester power - using children to pressurise their parents to buy certain products, e.g., toys, sweets (candy), fast food, sportswear and mobile apps.

 ATL Activity 1 (Communication skills)

In groups of 2 or 3, and with reference to the 7Ps of the marketing mix, recommend an appropriate marketing mix for any two of the following products or businesses. Compare and contrast the various elements of the marketing mix for your two chosen products. Be prepared to present your recommendations to your teacher and the rest of the class.

  • Premier bank services for high-income clients

  • Bottled water sold in supermarkets

  • Ford Mustang sports car

  • Samsung smartphones

  • Michelin star restaurant

  • Family holiday to Bali, Indonesia

  • Rolex watches

  • The IB World School you attend

 Top tip!

Marketing is an integrated topic and the 7Ps of the marketing mix is often assessed in the exams. Be prepared to consider any combination of the 7Ps if asked to discuss the factors that influence the marketing mix for a product or a business organization.

 ATL Activity 2 - The Brands We Love

Whilst this activity works really well on Valentine's Day, it can equally work well on other days of the year.

  1. Research three brands that you love. Choose these from different markets or industries.

  2. Find out some interesting facts/data/information about these brands.

  3. For one of your chosen loved brands, outline: (i) when the brand was established, (ii) who their main competitors are, and (iii) what you love about these brands. Present your findings as creatively as possible, using the heart templates (or create your own). However, do not include the name of the brand (logos or slogans are fine).

  4. Once completed, the class can do a gallery walk around the classroom to see how many of these loved brands can be correctly identified.

  5. For the remaining two loved brands, design suitable social media adverts to show the rest of the class.

Here's an example of the work created by students at English Talents School in Amman, Jordan. Many thanks to their teacher, Luna Hroub, for sharing the wonderful posters that were created.


 

Teachers can download a PDF version of this activity in the box below.

 Teacher only box
  ATL Activity 3 - The market for bottled fresh air

Read this article from the South China Morning Post about bottled fresh air from New Zealand being sold in China. The article also includes a short YouTube video about this story. Discuss the various elements of the marketing mix featured in the video.

Matt Haig, author of Brand Failures, claims that there is only a 1 in 10 chance of a product becoming a long-term success. Discuss how the marketing mix for such products could have been improved.

Review Quiz - Marketing mix vocabulary

To test your understanding of the terminology used in this section of the syllabus, identify the key term from the definitions provided below.

No.DefinitionKey term
1.How much the business is selling its product for, the value of which is paid by customers.

Price

2.The methods of distributing products to customers, such as using wholesalers, retailers, e-commerce, franchise distribution (incensing), and vending machines.

Place

3.The tangible aspects of a service which influence customer perceptions about the service, e.g. the appearance and cleanliness of the building (such as a bank, restaurant, or hotel).

Physical evidence

4.The operational aspects of a service, i.e., the steps and actions that a business takes to deliver its services to customers, such as queueing and payment systems.

Process

5.The methods used to ensure customers know about a firm’s product and are influenced or persuaded to pay for it.

Promotion

6.This refers to what the business is selling, i.e., the goods and/or services.

Product

7.This refers to the quality of the human interactions that customers have with a service.

People

Exam Practice Question - Barbie

Toymaker Mattel launched the Barbie doll back in 1959. Barbiemania hit the world in July 2023 with the release of the widely marketed fantasy comedy film Barbie movie, produced by Warner Bros. More than 100 brands were part of the marketing hype, reaching all kinds of demographics, prior to the movie’s official release. Some of the larger collaborators included Airbnb, Burger King, Crocs, Gap, Google, Xbox, and Zara. In addition, Mattel’s strategic investment in intellectual property (IP) licensing deals resulted in increased sales and profits. Mattel earns between 10% to 20% from these licensing deals, or what the company calls “brand partnerships”.

Mattel’s global head of Barbie, Lisa McKnight, said the brand had one goal for the year: make sure Barbie is “everywhere.” The Barbie marketing strategy, backed by a marketing budget of $100 million, included product tie-ins and viral social media marketing to create a buzz and collaborations beyond traditional movie promotions. Part of the appeal was how many people resonated with the escapism that the movie offered in a post-COVID world. The campaign also involved lead actor Margot Robbie and director Greta Gerwig embarking on a world promotional tour.

Overall, the Barbie marketing strategy generated excitement and customer engagement in world cluttered with advertising. The movie, along with the array of merchandising, is part of Mattel’s corporate strategy to expand the Barbie world beyond dolls and toys, in a similar way to Disney’s monetization of the Marvel franchise. The Barbie movie grossed over $377 million in its first weekend. The Barbie doll remains the best-selling toy of all time, with over a billion dolls sold since its launch over 60 years ago.

(a)Define the term intellectual property (IP).[2 marks]
(b)Explain one benefit of using social media marketing (SMM) as a promotional strategy for Mattel.[2 marks]
(c)Explain one way in which Mattel differentiates itself and its products from competitors.[2 marks]
(d)Explain two benefits of businesses collaborating with Mattel as part of its marketing strategy for the Barbie movie.[4 marks]
 Teacher only box

Note to teachers

Question (a) refers to intellectual property, which is a HL-only topic. However, do note that all students (including SL ones) are expected to know and understand the different types of intangible assets (AO2) in Unit 3.4. These are collectively referred to as intellectual property (IP).

For SL students, you may choose to change Question (a) to brands (which appears in the third sentence of the case study). You can click on the icon to see the answer for this alternative question.

(a)  Define the term brands. [2 marks]

Answer (for SL students)

(a)  Define the term brands. [2 marks]

The term "brands" refers to distinctive and exclusive names, symbols, or logos associated with products or organizations. Brands are used to distinguish and differentiate a firm or its products from others in the market, creating a recognizable and memorable image that resonates with consumers.

Award [1 mark] for a definition that shows partial understanding of the term brands.

Award [2 marks] for a definition that shows good understanding of the term brands, similar to the example above.

Answers

(a)  Define the term intellectual property (IP).  [2 marks]

Intellectual property (IP) refers to the intangible assets of a business through its creativity and capital expenditure. It encompasses a wide range of intangible assets, such as inventions, innovations, designs, artistic works, symbols, slogans, images, and proprietary knowledge that are products of human creativity and intelligence.

Award [1 mark] for a definition that shows partial understanding of the term intellectual property.

Award [2 marks] for a definition that shows good understanding of the term intellectual property, similar to the example above.

(b)  Explain one benefit of using social media marketing (SMM) as a promotional strategy for Mattel.  [2 marks]

Possible answers include an explanation of any one of the following:

  • SMM has a wide reach - Social media platforms have a broad user base, allowing the Barbie marketing team to reach a large and diverse audience across different demographics. This helps to ensure that the promotional messages reach the right people who were more likely to be interested in the Barbie movie and associated products.

  • SMM has potential to go viral - The use of engaging and shareable content related to the Barbie movie, such as movie trailers, behind-the-scenes footage, and interactive posts on various social media platforms, help to encourage users to share and spread the brand content with their social networks. This word-of-mouth marketing helps to amplify the reach of the Barbie campaign and to generate additional marketing buzz around the movie.

  • SMM facilitates real-time interaction and customer engagement - Social media platforms facilitate real-time interaction between brands and their audience. The Barbie marketing strategy leveraged this feature by engaging with fans, especially with the world tour to promote the movie. This high level of engagement created a sense of involvement and emotional connection with the Barbie brand, fostering brand loyalty and advocacy.

  • Accept any other relevant benefit that is explained in the context of the case study.

Award [1 mark] for a valid benefit and a further [1 mark] for a suitable explanation, written in the context of the case study.

(c)  Explain one way in which Mattel differentiates itself and its products from competitors.  [2 marks]

Possible answers include an explanation of any one of the following:

  • Strategic brand partnerships and collaborations - Mattel has set itself apart from its competitors by establishing licensing agreements with over 100 brands, including well-known names from Airbnb to Zara in order to expand the reach and appeal of its Barbie products. These collaborations go beyond traditional movie promotions, allowing Mattel to leverage the popularity and credibility of these partner brands to create cross-promotional campaigns.

  • Multi-platform marketing: The Barbie marketing strategy uses a multi-platform approach, combining product tie-ins, viral social media marketing (SMM), and traditional movie promotions. This comprehensive marketing mix enables Mattel to create a buzz and engage with customers on various levels. By leveraging social media platforms, for example, Mattel ensures that the marketing message reaches a wide and diverse audience..

  • Expanding the brand beyond dolls and toys - Mattel's corporate strategy involves expanding the Barbie brand beyond dolls and toys. This diversification strategy allows Mattel to capitalize on the strong brand recognition, value, and recognition of Barbie to enter new product categories and markets. By doing so, Mattel would differentiate itself from competitors who may have a much narrower product focus.

  • Emotional appeal and escapism - The Barbie marketing campaign taps into the emotional appeal of escapism, especially in a post-COVID world. By emphasizing the movie's ability to offer a form of escapism and leveraging lead actor Margot Robbie and director Greta Gerwig for promotional activities, Mattel creates an emotional connection with audiences and customers from across the world. This approach sets Barbie apart by resonating with customers who seek entertainment and distraction from the challenges of reality.

  • Accept any other relevant method that is explained in the context of the case study.

Award [1 mark] for a valid way or method by which Mattel differentiates itself and a further [1 mark] for a suitable explanation, written in the context of the case study.

(d)  Explain two benefits of businesses collaborating with Mattel as part of its marketing strategy for the Barbie movie.  [4 marks]

Possible answers include an explanation of any two of the following interrelated points:

  • Expanded customer reach and brand exposure - Collaborating with Mattel as part of the Barbie movie marketing strategy offers businesses the opportunity to tap into Barbie's extensive and diverse audience. With the Barbie brand having a global presence and a rich history spanning over six decades, businesses can benefit from increased reach and exposure to various demographics and markets. This extended visibility can help to improve brand recognition and potentially attract new customers to their products.

  • Leveraging Barbie's brand value - As the best-selling toy of all time, the Barbie brand carries substantial brand value and the trust of customers. By associating themselves with Barbie through strategic collaborations, partner businesses can leverage this positive brand image in order to enhance their own corporate reputation. Being associated with a beloved and iconic brand like Barbie can positively impact the perception of their own products, leading to increased sales and profits.

  • Cross-promotional opportunities - Collaborating with Mattel provides businesses with the opportunity to engage in cross-promotional activities. By aligning their products with the Barbie movie and merchandise, businesses such as Burger King and Crocs can tap into the excitement and hype surrounding the film's release. This cross-promotion can lead to mutual benefits, where the marketing efforts of both Mattel and the collaborating businesses reinforce each other, resulting in greater visibility and consumer interest.

  • Access to Mattel's intellectual property (IP) licensing - Businesses collaborating with Mattel are allowed to incorporate aspects of the company's characters and themes from the Barbie movie into their own products or marketing campaigns. The association with Barbie can enhance the appeal of their own product offerings, potentially leading to increased sales and market competitiveness.

  • Creative and innovative marketing - The Barbie marketing strategy for the movie involved a broad range of elements, including product tie-ins, viral social media marketing, and brand partners. By collaborating with Mattel, businesses can be part of these creative and innovative marketing campaigns. This collaboration can help to inject new ideas and creativity into their own marketing mix, helping them to also stand out in a competitive market and capture the attention of their target audience.

  • Enhancing customer engagement - The Barbie marketing strategy generated much excitement and customer engagement across the globe. By collaborating with Mattel, businesses can benefit from this level of enthusiasm and emotional connection that consumers have with the Barbie brand. Engaging in joint promotional activities can also create a sense of involvement and interest amongst customers, leading to higher levels of engagement and brand loyalty.

Mark as a 2 + 2.

For each point, award [1 mark] for a valid benefit and a further [1 mark] for a suitable explanation, written in the context of the case study, up to the maximum of [4 marks].

The marketing mix - Review questions

To test your understanding of the various components of the marketing mix, have a go at these review questions.

 

Which term is used to describe the way a business combines the main marketing elements to sell products that meet the needs and wants of customers?

The marketing mix consists of the key elements used to sell products to meet the needs and wants of customers. There are 4 elements used to sell goods: product, price, place and promotion. An additional 3 Ps are used to sell services: physical evidence, people and processes.

 

Which of the traditional 4Ps of marketing concerns the various channels (methods) a business uses to distribute its products?

Place in the marketing mix refers to distribution, i.e. how products get to their customers, e.g. retailers, wholesalers, agents and vending machines. Hence, the correct answer is place.

 

If a business strives to meet the needs and wants of customers by delivering a higher quality service, which element of the marketing mix will it focus on?

A ‘Product’ can refer to both goods and services. In an attempt to better meet the needs and wants of customers by delivering a higher quality service, the business focuses on improving its product. Hence, the correct answer is product.

 

If a business wants to build customer awareness of the features and benefits of its products, which element of the marketing mix is it most likely to focus on?

Promotion is used to communicate the benefits of a particular product. Hence, if a business wants to raise customer awareness of the features and the benefits of its products, it focuses on promotion in the marketing mix. Therefore, the correct answer is promotion.

 

What is the use of a name, symbol or design to identify a particular product known as?

Branding is a type of intellectual property rights (IPRs) used by businesses to distinguish their products from rival ones. Brands can be in the form of a name (e.g. the Nike brand name), symbol (e.g. the Apple logo) or design (e.g. the Coca-Cola glass bottle) used to identify a particular product.

 

Which of the following products does not feature in the Boston Consulting Group Matrix?

Premium brands are those that are able to charge a higher than average (market) price. These do not feature in the BCG Matrix, which is used to assess a firm’s product portfolio. Cash cows are products in low growth (mature) markets with high market share; Dogs are at the end of their life cycle with declining market share; Question marks are new products that have yet to establish themselves in the market.

 

What are cash cows?

Cash cows are the main generators of cash and profit, so are used to support investment in new products (rising stars - products that are potentially very profitable but which need large investment). Hence, the correct answer is products that support investment in new products.

 

Which term describes the way in which firms try to create differences between their products and those of competitors known as?

Product differentiation can come in many forms, e.g. colour, size and design. The correct answer is therefore product differentiation. Branding is an example of product differentiation. Promotion can be used to communicate how the product is different from its rivals or substitutes.

 

Which term is described as a combination of a name, symbol, design and other factors that identifies a firm’s product?

A brand can come in various forms, including a name (e.g. Adidas), symbol (e.g. Nike’s ‘Swoosh’), design (e.g. the classic Coca-Cola bottle) and other factors such as slogan (e.g. McDonald’s “I’m lovin’ it”).

 

Trialling a new product in a limited geographical area or with a small group of customers is known as...

Test marketing is used to trial a new product with a select target audience, prior to a national launch. If the target audience is representative of consumers in the economy, then the test marketing allows the firm to refine its marketing strategy for the larger scale, national launch of the new product.

 

The use of promotional media such as television where a business does not have any direct control is known as

Television advertising is one of the most common forms of above-the-line (ATL) marketing. In practice, businesses do not have any direct control over ATL marketing, e.g. if McDonald’s pays for a television advert, it does not necessarily know or cannot prevent the broadcaster from screening adverts from its rivals during the same advertising slot.

 

Burger King runs a nationwide competition in their stores with instant prizes on offer, ranging from free burgers to cash prizes. What is this an example of?

Sales promotion is part of the promotional mix, involving marketing tactics used to periodically boost or stimulate demand. Sales promotions such as cash prizes and free food at Burger King help to attract new customers, rejuvenate demand from existing customers and to counteract competition. Sales promotions such as free prizes are rarely sustainable marketing strategies.

 

According to the Boston Consulting Group Matrix what is the name given to products that are potentially very profitable but which may need large sums of investment?

Stars are products that have high market share in fast growing markets. The correct answer is therefore stars. Businesses hope to turn stars into cash cows (products with high market share in mature, low-growth markets). To do so may require large sums of investment.

 

Which of the following is not part of the promotional mix?

Market research is a prerequisite to devising an effective promotional mix. The promotional mix consists of sales promotion, advertising, personal selling, direct marketing and public relations. Collectively, these five components of the promotional mix work to inform and remind customers about a firm’s products and to persuade them to make a purchase.

 

Which of the following is an example of above-the-line promotion?

Above-the-line (ATL) promotion involves paid-for promotional activities targeted at mass audiences, such as television and radio advertisements. Hence, the correct answer is radio advertising.

 

Wholesalers buy in large quantities and sell onto retailers in smaller quantities. What is this practice known as?

Wholesalers buy their stock (inventory) direct from the manufacturer, such as Costco purchasing 100,000 cans of Sprite from the Coca-Cola factory. They then break up their bulk purchases and sell the cans of Sprite in smaller quantities to retailers. Hence, the correct answer is breaking bulk.

 

An insurance broker is an example of what kind of intermediary in the distribution channel?

To buy insurance, the customer uses an agent as an intermediary with the insurance provider. Customers may choose to directly deal with different insurance companies to find the best deal for their travel, home and motor insurance, although many customers will choose to pay an insurance agent to do this for them. Hence, the correct answer is an agent.

 

Which of the following industries is most likely to make significant use of wholesalers to achieve effective distribution?

Wholesalers operate on a very large scale, so work best with single mass-produced items such as daily newspapers or monthly magazines. Hence, the correct answer is newspapers and magazine publishing.

 

A firm launches a new and unique product and decides to charge a high price before competitors join the market. What pricing strategy is this an example of?

Skimming is a pricing strategy used by firms that sell innovative or hi-tech products that have high research and development (R&D) costs. A high price is used to recoup the high R&D costs and to maximise profit margins before competitors join the market, forcing the market price to fall. Hence, the correct answer is Skimming.

 

A pharmaceutical company charges a high price to customers in the USA for a particular medicine but charges customers in Sudan a lower price for the same medicine. What pricing strategy is this an example of?

Price discrimination involves charging different customer groups different prices, such as child and adult air fares or peak and off-peak travel prices. Therefore, pharmaceutical companies that charge a high price to customers in the USA but a lower price to customers in Sudan for the same medicine are using price discrimination. Hence, the correct answer is price discrimination.

 

What is the name of the pricing strategy where a deliberately low price is set so that the firm can increase its market share?

Penetration pricing is used by firms trying to establish their market share in an industry. To do so, these firms deliberately set a low price in order to attract new customers, thus taking away market share from existing firms in the industry. Hence, the correct answer is penetration.

 

Greg’s Bakery sells a product at just $0.50 each rather than the normal price of $2 in order to encourage customers to buy other products offered at the bakery. What pricing strategy is this an example of?

Loss leader pricing occurs when Greg’s Bakery sells its products at a price lower than its costs of production in order to attract buyers, many of whom will also buy other products with high profit margins. Hence, the correct answer is a loss leader.

 

Which of the following is the least likely method used by firms to differentiate between their pizzas?

A price discount of 10% is not a form of product differentiaion but a (temorary) pricing method used to attract more customers. Branding, packaging, and product features (pizza toppings, in this case) are all examples of product differentiation as a marketing strategy.

 

Makers of hair conditioner and shampoo often send out free samples of their products with magazines. What is this is an example of?

Free samples are an example of sales promotion. Sales promotion is an element of the promotional mix that involves using temporary sales tactics to stimulate interest in a firm’s products (such as by offering free samples of hair conditioner and shampoo). Sales promotions are not generally financially sustainable. Hence, the correct answer is sales promotion.

 

Which of the following is not part of the promotional mix?

The promotional mix is used to communicate with customers about a firm’s products, by informing and reminding customers about the products. The promotional mix consists of five elements: advertising, personal selling, sales promotion, public relations and direct marketing. Hence, the correct answer is customer service.

 

Which of the following factors is least likely to influence the choice of advertising media by a business?

Although the location of an advertising agency can be important, developments in information communication technology (ICT) make the location less important. Furthermore, the location of the advertising agency can have minimal influence on the choice of advertising media itself. Hence, the correct answer is the location of the chosen advertising agency. By contrast, The volume of exposure required, the kind of message the business wants to get across and the advertising budget of a business are all important factors in deciding on the choice of advertising media, such as television, radio or magazines.

 

Which form of promotion uses unconventional methods, suitable for firms on a relatively low budget, to maximise marketing exposure?

Guerrilla marketing uses low-cost and often very unconventional methods to promote a firm’s products. Guerrilla marketing can make use of viral marketing and social media marketing to popularise a firm’s products.

 

The use of websites such as YouTube, Twitter and Facebook to gain marketing exposure is known as

Social media marketing is a form on internet marketing. It uses social media websites such as YouTube, Twitter and Facebook to popularise a firm’s products by promoting to a network of individuals, groups and organizations. Hence, the correct answer is social media marketing.

 

The different stages that a typical product goes through from its launch to its removal from the market is shown by a...

A product will typically go through the 5 stages in its life cycle: research and development, launch, growth, maturity and decline (which eventually leads to the product being withdrawn from the market). Hence, the correct answer is product life cycle.

 

If the cost of producing one unit of a product is $5 and the firm includes a mark- up of 40%, what is the selling price?

The firm adds 40% on top of the costs of production to ensure each unit earns a mark-up (contributing towards profit). Hence, the selling price is 40% ($2) more than the cost of production ($5), i.e. $5 × 1.4 = $7. Hence, the correct answer is $7.00.

 

A retailer sets a profit margin of 65% on all its products. If a particular product costs $1.20, what price does the retailer sell the product at?

The profit margin represents the amount over and above the costs of production. In this case the price set is 65% greater than the costs, i.e. $1.2 × 1.65 = $1.98. Hence the correct answer is $1.98.

 

Total Score:

Return to the Unit 4.5 - The seven Ps of the marketing mix homepage

Return to the Unit 4 - Marketing homepage