LO 1 to LO3

____ is referred to as the distribution channel in the marketing mix.

• Product

• Place

• Price

• Physical evidence

Which of the following best describes a product life cycle?

• Growth, Decline, Introduction

• Introduction, Growth, Maturity, Decline

• Decline, Maturity, Introduction, Growth

• Introduction, Maturity, Decline, Growth

Which strategy is not included within a businesses overall promotional mix?

• Creating a business plan

• Sales Promotion

• Public Relations

• Advertising

Demand-based pricing is determined

• by using the wholesale cost of an item as the basis for the priced charged

• by how much the consumer is willing to pay for a product or service

• by what competitors are charging for the same good

Offering an incentive to customers in order to increase sales--contests, free samples, coupons etc...

• promotional mix

• telemarketing

• personal selling

• sales promotion

When you see an advertisement for a store and decide to shop there, which element of the marketing mix has succeeded?

• presentation

• product

• place

• promotion

What is price skimming?

• An initially high price charged to customer which will reduce over time

• An initially low price charged to customer which will increase over time

• A steady price charged to customer regardless of product age

What is meant by Psychological pricing strategy?

• Items are offered at an uneven number to appear cheaper encouraging sales (eg MVR 9.99)

• Items are sold at production cost price to attract customers into the store and increase purchases

• Items are sold using a special promotional offer which is brightly coloured and attracts attention

What is the aim of Loss Leader pricing strategy?

• To attract new and existing customers and increase sales of other items

• To increase profit

• To make customers aware of entire product range

PESTLE Analysis identifies factors that occur within the organisation.

• True

• False