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Marketing Mix Exam Questions

Marketing Mix Exam Questions. Minute per mark rule! Content, Application, Analysis and Evaluation Skills!. Outline and justify an appropriate pricing strategy for the following: (9 Marks) A small corner shop A company launching a revolutionary pair of designer jeans A petrol retailer.

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Marketing Mix Exam Questions

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  1. Marketing Mix Exam Questions Minute per mark rule! Content, Application, Analysis and Evaluation Skills!

  2. Outline and justify an appropriate pricing strategy for the following: (9 Marks) • A small corner shop • A company launching a revolutionary pair of designer jeans • A petrol retailer

  3. Virgin offers a wide range of prices for the same product. The place alters according to time of departure, day of departure, amount of time between the outward and return journeys and age of the passenger. Explain why a business does this. (5 marks)

  4. Anderson Consulting stated in 1998 e-commerce business had helped to increase revenue by between 10% and 20% whilst cutting costs by between 20% and 45%. Explain how these figures may have been achieved. (5 marks)

  5. What problems might a business face if it launchers a product at a national level which the fails? (8 marks)

  6. Model Answer 1 (9 Marks) • Cost plus is where companys add a mark up on the original cost. They cannot compete with larger rivals, so must charge mark up to cover costs. Location will help as to locate in highly populated areas, opening hours are longer therefore adding costs. • Market skimming is when companies charge the top price to attract the ‘cream of the market’. This price gives the feeling of exclusivity will drive prices up. • Competitor pricing is when organisations set prices around competitors prices. Petrol stations must charge the same due to the homogeneous market it operates within.

  7. Model Answer 2 (5 Marks) • Virgin uses discriminatory pricing. Discriminatory pricing is where a company alters its prices (usually higher) based on time, location or target group. Virgin uses segmentation in order to enhance its profits to make the most out of supply/demand scenerios. Hence more profitable.

  8. Model Answer 3 (5 Marks) • This type of business may provide an opportunity to attract new customers who have come across websites whilst surfing. Electronic commerce offers opportunities for implusive buying. There are fewer overheads, no expensive shop fit outs and fewer staff required – all reducing overheads. It is likely because of this that the cost per unit is reduced which has allowed more money available for marketing and selling.

  9. Model Answer 4 (8 Marks) Finance – cost of raising the money to pay for the marketing must be paid for. The company could be left with unsold stock which costs money both to store and finance. Extra machinery may have been bought to produce goods. Marketing – expensive campaigns may have been used to promote the product. Corporate image – the failure of the product may have damaged the company image i.e. Dasani. Fall in share price and lack of confidence in future launches amongst shareholders may now occur.

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