Marketing

• What is the definition of "place" in the marketing mix?

  Where product is available
• Distribution channels involve the routes goods follow between the manufacturer and the consumer
• Distribution involves moving materials to the producer or finished products to the consumer.
• What is multi-channel distribution?

  Using multiple distribution routes
• Direct marketing occurs when there is a direct link from the producer to the customer
• Match the term with its definition:

  Manufacturer ↔️ The maker of products

  Wholesaler ↔️ Buys from manufacturer, sells to retailers

  Retailer ↔️ Sells goods to consumers
• Order the functions of a retailer:

  1️⃣ Display goods

  2️⃣ Promote goods

  3️⃣ Sell to consumers

  4️⃣ Provide customer service

  5️⃣ Deal with faulty goods

  6️⃣ Buy from wholesalers

  7️⃣ Break bulk
• What is the purpose of a warehouse in the distribution process?

  Storing goods before sale
• One factor to consider when locating a store is its closeness to the market
• Planning permission is essential for developing a business area.
• What does multi-channel marketing involve?

  Using various marketing channels
• E-commerce, also known as electronic commerce, involves buying and selling goods via the internet
• What is one advantage of retailers selling on the internet?

  Wider market reach
• A website crash can negatively impact a retailer's reputation.
• Why might more storage space be needed if a retailer sells online?

  To handle increased inventory
• M-commerce, or mobile commerce, involves buying goods through hand-held mobile devices
• Match the element of the marketing mix with an example:

  Product ↔️ Introduce new goods

  Place ↔️ Move to a busier location

  Price ↔️ Use economy pricing

  Promotion ↔️ Offer sales incentives
• Market penetration pricing can be harmful if maintained for too long.
• What is an example of a sales promotion used to encourage customers?

  Tesco clubcard
• Order the advantages of customers buying on the internet:

  1️⃣ Compare prices easily

  2️⃣ Save on travel costs

  3️⃣ Pay online securely

  4️⃣ Access wider product choice

  5️⃣ Order 24/7
• What is a possible disadvantage of buying goods online?

  Fraudulent transactions
• What is the definition of price in marketing terms?

  The amount of money
• Penetration pricing involves setting a low price for a new product to encourage sales.
• Penetration pricing aims to attract customers who may then stay with the business as prices increase later.
• What is a disadvantage of penetration pricing?

  Customers may question quality
• Price skimming involves selling a product at a high price to earn high initial profits.
• Steps involved in price skimming strategy

  1️⃣ Sell product at a high price

  2️⃣ Earn high initial profits

  3️⃣ Reduce price later to increase sales
• Price skimming may exclude customers unwilling to pay high prices.
• What is cost-plus pricing?

  Adding profit to cost
• Adding profit to cost ensures that a profit is made on each good or service.
• What is a limitation of cost-plus pricing?

  May not work in competitive market
• Psychological pricing often involves using prices below whole numbers, such as £5.99p, to make them seem cheaper.
• Psychological pricing can nudge customers to make a purchase by making prices appear more attractive.
• Why might psychological pricing fail to increase revenue?

  Some customers may not be convinced
• Competitive pricing ensures that a firm is price competitive by matching or undercutting competitors' prices.
• What is price discrimination?

  Charging different prices
• A loss leader is a product sold at a price that makes no profit or even a loss to attract customers.
• Loss leaders boost sales of other, more profitable products in the store.
• What is a limitation of using loss leaders?

  Customers may expect low prices
• Businesses may charge higher prices due to higher costs, exclusive markets, or a well-known brand.