Download Marketing Questions

Food Tech Chapter 16 Marketing Questions
1. What are the 4 P’s of marketing?
 Product
 Place
 Promotion
 Price
2. What factors may cause a product to fail?
Factors that may cause a product to fail are: inadequate marketing plan,
slow product development team, the promotional campaign does not target
the right market or is not ready for the product launch, distribution of the
product to appropriate retail outlets is not finalised, the price of the
product is too high for the target market. It will fail if not all the areas of
the marketing mix are used. This is critical to the success of the product.
It will fail if there is not enough funds to develop or manufacture the
product, if the target market dislike it etc.
3. What does the marketing plan have to do with the objectives of the
company?
A marketing plan translates the company’s objectives into marketing
terms, i.e. how to maximise sales, maintain or increase customer
satisfaction and improve consumer choice and quality of life. The
marketing plan identifies the target market, predicts demand for the
product and organises the activities of the marketing mix. The marketing
plan provides a common goal for all people involved in the marketing mix.
The marketing plan helps managers to clarify what they want to achieve
and makes staff more aware of what they have to do within a certain
timeframe.
4. What does it mean when a company has a product orientation approach
rather than a sales orientation approach?
A product orientation approach has an aim to make a better product than
that of the competitors. Thus the company spends more time & money on
the product planning activity in the marketing mix. Whereas a sales
orientation approach has the aim to encourage more people to buy the
product. The company spends more time, effort & money on the price
structure, promotion & placement/distribution activities in the marketing
mix.
5. Explain the product life cycle.
The product life cycle is a graph of product sales over time. Marketers
watch the graph to monitor how the product is performing in the
marketplace. This graph helps to determine the strategies needed to give
the product the longest & most financially rewarding life possible. Stages
in the product life cycle are: introduction, growth, maturity and decline.
6. What are dinks, tweenies, dewks, puppies and woofs? How might a single
product such as a canned soup differ depending upon these market
segments?
 ‘Dinks’- dual-income families with no kids
 ‘Tweenies’- pre-teen, teenage market
 ‘Dewks’- dual-income famililes with kids
 ‘Puppies’- poor urban professionals, e.g. uni graduates
 ‘Woofs’- well-off older folks
A simple product such as a canned soup will differ amongst these market
segments based on: the target market, age, gender, socioeconomic level,
family size and education. The ‘Woofs’ are better able to pay a higher price
for the product than ‘Dewks’ can. Canned soup would be appropriate for
‘Dinks’ as they have busy lives and might not have time to cook a proper
meal. It is an afforable product for ‘Dewks’ and ‘Puppies’ and might be a
nice’ & quick meal change once in a while for the ‘Woofs’ who can afford
more expensive meals.
7. What factors determine a products’ price?
The product price depends on what the target market is prepared to pay.
Factors that can assist in deciding a product’s price are:
 Lower the price is, the higher the demand will be
 Gaining market share is important. To encourage more people to
buy the product, the price must be lower than the competitors price.
 A company’s policies may restrict prices. A company with a prestige
image will not want to discount the product because this could hurt
the brand’s association with luxury and their reputation or image
that they project to consumers; devaluing the product, image &
brand.
 Anticipated reactions of competitors are important. Will not raise
prices, unless competitors do so to.
8. Define the following terms: penetration pricing, competitive pricing and
list price.
 Penetration pricing – means the product price is below that of its
competitors for long enough to obtain a foothold in the market.
 Competitive pricing (status-quo pricing) – is where the price is set
to match that of the competitor; the price is the same for all similar
products e.g. milk.
 List price – is the suggested selling price based on the break-even
point.
9.




Promotion activities include?
Advertising
Personal selling
Publicity/public relations
Sales promotion (sales & demonstrations)
10. Why is advertising the most common form of promotion? List 3 types of
advertising
Advertising is the most common form or promotion as it tells us who we
are or should be, it influences us and suggests that happiness can be
obtained from buying a certain product or looking a certain way.
Advertising tells us that a product can fulfil our every desire & provide
instant solutions to life’s problems. It affects our lives.
3 types of advertising are:
 Magazines/newspapers
 Television
 Radio
11. What is “product positioning” and why is it important?
Product positioning refers to the image of a particular product in the mind
of a consumer. E.g. people associate orange juice as the primary drink at
breakfast. It could also be advertised as a refreshing drink at any time of
the day; it is important as the consumer could be made to see the product
in a different way.
12. Give an example of a sales promotion
Sales promotions could be: contests, free samples, coupons, cash-back
offers etc; anything that entices or influences a consumer to purchase a
good or a service.
13. What is personal selling?
Personal selling is a major promotional tool which is mainly invisible to
the average consumer. It involves one person selling directly to a customer
and is not very popular with food products.
14. Explain the terms of publicity and public relations listing examples.
 Publicity is the unpaid use of media to get the public to recognise
your product; broadening their knowledge and recognition of a
product. E.g. when a company’s wine wins a prize at an annual
wine show, when a celebrity wears the company logo when playing
sport, attending a function or who is seen eating/drinking the
product. The company pays the celebrity for wearing the company
logo, but not for any publicity the celebrity generates.

Public relations are a communication tool to build or maintain a
favourable image (relationship) with the public. E.g. sponsorship of
sporting team/event, school activities and charity
drives/fundraisers, to help build a positive company image.
15. What does “place” refer to in the marketing mix?
Place in the marketing mix refers to where the product will be sold
geographically and to the kinds of outlets in which it will be sold.
16. What is the difference between intensive, selective and exclusive
distribution? Give examples of two products for each.
 Intensive distribution – is when products are available at every
possible outlet. E.g. chocolate bars, soft drinks (especially coke)
 Selective distribution – when there is a wide but not intensive
distribution. E.g. some types of cheese are available at Deli’s rather
than Woolies or Coles
 Exclusive distribution – when a limited supply of a product is sold
in only a few retail outlets usually because the product is expensive.
E.g. handmade chocolates – has an elite image in the consumer’s
mind.
17. What “tricks” might supermarkets use to entice consumers to buy
particular products?
 Impulse bars at the front of supermarkets near check out, selling
luxury items such as chocolate bars, magazines to entice you to buy
them as they are at your convenience and they display a vast range
to choose from. They are enticing as you wait in line to be served
and pick up the magazine to read whilst waiting, then you are
served and have not finished yet – so you are enticed to buy it.
 Impulse buying – building wide aisles and placing demand items
(bread, eggs, milk, butter etc) at the back and throughout store so
the person has to walk past many other items which can be
tempting, to get to the product they wanted. Through passing all
these items, one is tempted to purchase other items they did not
intend on buying.
 Smell of fresh bakery items and fresh cuts of meat and in-store
cooking demonstrations – satisfy your hunger and entices
you/persuades you after trying the product (provided that you liked
it) to buy it.
 Putting items on sale, specials.
 Having add-ons, side by side foods that complement each other. E.g.
corn chips next to a dip, entices you to buy both,
18. List and explain the different types of retail outlets
 Regular supermarkets – offer a wide range of brand names for most
products & are the first to offer new products, one-stop shop.
Manufacturers pay a lot of money for shelf space – important.
Usually convenient parking close to store with ramps, some are
placed in malls/shopping centres to draw in more customers. E.g.
Coles, Woolworths, Franklins
 Discount supermarkets – offer slightly lower prices on basic items
than in regular supermarkets & there is a no-frills approach to
store displays & fittings. The selection of name brand products is
limited & new products take longer to appear on shelves. Prices do
vary as they do in regular supermarkets. The price charged depends
on the amount of competition and the demographics of the market
in a certain location. The more competition = lower price. E.g. Aldi
 Bulk-buying barns – sell products that are almost out-of-date &
that have recently fallen from popularity. Customers buy products
in bulk, by the case. The retailer makes a profit because it sells such
a large quantity. The consumer can save money but must have
adequate storage space at home.
 Small-independent food stores & corner stores – products cost more
than they do in a regular supermarket as these retail outlets offer
convenience so customers pay more. Small store owners buy their
food through wholesalers because their orders are too small for
large producers to fill directly. The more people who handle the
product, the more it costs the consumer. E.g. IGA
 Vending machines – great way of promoting products. They are
expensive to maintain, are easily vandalised and need to be
restocked often.
19. Explain the process of distribution
Distribution involves moving the product from the manufacturer to the
point of sale. The longer the chain = the less efficient it is.
Distribution includes the following activities:
 Warehousing – correct storage of goods = consumer perceives
product in the best & safest possible condition.
 Materials handling – forklifts, conveyor belts & other materials that
move the cartons of product from the storage area to pallets ready
for shipping
 Inventory control – essential as it ensures the quality of the product
& quick filling of orders. Holding too much stock is expensive –
because it takes up space & the chances of theft, fire and water
damage increase, as the product is held longer


Order processing – handling & filling of orders, processing of
accounts & collection of credit payments. Makes sure the customer
receives what they order, when they want it
Transportation – type used – air, water, rail or road, depends on the
type of product, urgency of the delivery, the distances to be covered
& the nature of the product.
20. What is “direct marketing”?
Direct marketing is the shortest sales path between producer and/or
supplier and consumer; the consumer orders directly from the supplier. It
is an alternative to retail shopping. Examples are: flyers & pamphlets in
the mail, home shopping network on cable TV, telemarketing.