Question 1: Define the term 'marketing mix' and explain its importance for a business.

Answer: The marketing mix refers to the set of four key elements—Product, Price, Place, and Promotion—that a business uses to meet customer needs and achieve its marketing objectives. It is important because it helps businesses effectively target their market and differentiate themselves from competitors.

Question 2: Identify and describe two factors that a company should consider when deciding the price of its product.

Answer: Factors include production costs, which determine the minimum price needed to cover expenses, and competitor prices, which influence the pricing strategy to remain competitive in the market.

Question 3: Imagine a new fitness app targeted at teenagers. Suggest two promotional strategies that could be used to attract this audience.

Answer: Strategies could include advertising on social media platforms popular with teenagers, such as TikTok or Instagram, and offering free trial periods or discounts to encourage downloads and usage.

Question 4: Describe what is meant by 'distribution channels' and give two examples relevant to a clothing retailer.

Answer: Distribution channels are pathways through which a product moves from the producer to the consumer. Examples include selling through a physical retail store and selling online via the company’s website or third-party e-commerce platforms.

Question 5: Sketch a simple diagram illustrating the concept of the 'product life cycle'. Label the four main stages.

Answer: A correct sketch would show a graph with four stages: Introduction, Growth, Maturity, and Decline, typically represented as a curve that rises during Growth, peaks at Maturity, and then declines.

Question 6: Explain how a business might change its marketing mix when launching a luxury brand versus a budget brand.

Answer: A luxury brand might focus on high-quality products, premium pricing, exclusive distribution channels, and sophisticated promotion methods. Conversely, a budget brand would emphasize affordability, competitive pricing, wide distribution, and cost-effective advertising.

Question 7: Identify three methods a business could use to promote its product in a local community.

Answer: Methods include distributing flyers, sponsoring local events, and offering special discounts or demonstrations in local shops.

Question 8: Draw a plan for a promotional campaign for a new coffee shop targeting students. Include key elements in your plan.

Answer: A suitable plan would include social media advertising, offering student discounts, organizing opening events, and distributing flyers around campus.

Question 9: Why is it important for a business to adapt its marketing mix for different markets or customer segments?

Answer: Because different markets or customer segments have varying needs, preferences, and purchasing behaviors, adapting the marketing mix helps the business better meet those needs and increases the likelihood of success.

Question 10: Evaluate the potential benefits and drawbacks of offering products exclusively online versus through physical stores.

Answer: Benefits of online sales include wider reach, convenience for customers, and lower overhead costs. Drawbacks include lack of physical experience, possible delivery issues, and limited personal interaction. Physical stores provide tactile experiences and immediate customer service but involve higher costs and limited geographic reach.