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Marketing Mix Revision Questions (1)

The document contains a series of questions related to business concepts such as marketing mix, pricing strategies, and promotional methods. It includes case studies of various businesses, asking for justifications and explanations regarding their marketing and operational decisions. Additionally, it covers definitions and advantages of different business practices, requiring analytical responses from the reader.

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0% found this document useful (0 votes)

5 views

Marketing Mix Revision Questions (1)

Uploaded by

kicogag595

We take content rights seriously. If you suspect this is your content, claim it here.

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Download as PDF, TXT or read online on Scribd

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1

1 State two elements of the marketing mix.

Element 1: ...............................................................................................................................................

..................................................................................................................................................................

Element 2: ...............................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]

2 MTD manufactures specialist cleaning products including soap. Batch production is used. The business uses
just-in-time inventory control. MTD took 18 months to develop its latest environmentally friendly cleaning
product. The Marketing Manager has to decide on the packaging and method of promotion for this new
product. She said: ‘All our stakeholders, including pressure groups, are important. MTD wants to contribute
to sustainable development.’

Do you think using social media is the best way for a business to promote a new product? Justify your answer.

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]
2

3 AHG is an established business as it has been operating for a long time. It sells garden products including
plants and flowers. AHG uses competitive pricing. The business has 4 managers and 30 other employees.
All AHG’s managers use delegation. The Finance Manager is analysing AHG’s statement of financial position
as she is interested in its liquidity. An extract is shown in the table below.

Extract from AHG’s statement of financial position at 30 March 2022 ($000)

Non-current assets 800

Current assets 660

Current liabilities 600

Do you think competitive pricing is the best method for an established business to use? Justify your answer.

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]

4 Define ‘marketing budget’.

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]
3

5 Tom started ALB 5 years ago making trainers (sneakers) out of sustainable materials such as wool. One of
ALB’s objectives is to protect the environment. As part of his research, Tom calculated some costs which
he could use in his break-even analysis. An extract is shown in the Figure below. ALB uses retailers to
distribute its products. Tom thinks a successful entrepreneur has to be a good manager.

Outline two possible advantages to ALB of using retailers to distribute its products.

Advantage 1:.............................................................................................................................................

..................................................................................................................................................................

Advantage 2:.............................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]
4

6 After identifying a gap in the soft drinks market, Jerome developed a low sugar drink. He borrowed $5 000
from family and friends to start-up a business and to provide working capital. Jerome operates as a sole trader.
To promote his product, Jerome handed out free samples in the town centre. In the first year, Jerome’s business
sold 10 000 units. This is 200 units more than his break-even output. Jerome is considering ways to increase
added value.

Do you think giving out free samples is the best method of sales promotion for a business to use when
promoting a new food product? Justify your answer.

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]

7 Define ‘marketing mix’.

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]
5

8 RJJ manufactures women’s shoes. It sells the shoes to a niche market using e-commerce. RJJ is a public
limited company and its shareholders benefit from limited liability. The Managing Director is planning to
expand the business. RJJ could take over a competitor. Last year profit decreased by $50 000. The Finance
Director has to decide on a source of finance to fund the expansion.

Outline two opportunities for consumers of using e-commerce when purchasing RJJ’s products.

Opportunity 1: .........................................................................................................................................

..................................................................................................................................................................

Opportunity 2: .........................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]
6

9 Kala always wanted to be an entrepreneur. She used to work for a business which downsized its workforce
5 years ago. She then decided to start up CHL. She produced a business plan which helped her obtain finance.
Kala now designs customised sports clothes for women. Kala sells these products directly to customers using
e-commerce. She has a loyal customer base of 25-40 year olds. However, Kala is worried about increased
competition in this niche market. One idea she has is to target different market segments

Explain one advantage and one disadvantage to Kala of using e-commerce to sell her products.

Advantage:................................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

..................................................................................................................................................................

Disadvantage:...........................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]

10 State four factors a business should consider when deciding the price of a product.

Factor 1:....................................................................................................................................................

..................................................................................................................................................................

Factor 2:....................................................................................................................................................

..................................................................................................................................................................

Factor 3:................................................................................................................................................3:

..................................................................................................................................................................

Factor 4:....................................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]
7

11 LBM is an online fashion clothing retailer. LBM’s target market is 18-35 year olds. Last year revenue
increased by 25% to $600m. The Marketing Director said: ‘All businesses have to satisfy customer needs.
Customer service is important which is why all employees receive induction training. LBM offers customers
a wider range of products than its competitors. Promotion is through social media networks. Is there any
reason to open our own shops?’ LBM plans to add 3500 new styles each week and will need to arrange
finance for the additional inventory.

Identify and explain one advantage and one disadvantage to LBM of opening its own shops.