Marketing

Lucozade, originally a product for the sick, rebranded itself as an energy and sports drink.  The most likely extension strategy used was

• Changing the recipe of the drink

• Lowering the price

• Finding new uses for the product

• Raising the price

When developing a new product, a business will consider how the product looks and feels. This would be classed as its:

• Function

• Aesthetics

• Cost

• Design mix

At which stage of the product life cycle are product sales most likely to be at their highest?

• Introduction

• Growth

• Maturity

• Decline

When a business develops a product that is unique to rival products, it is best known as:

• Diversification

• An extension strategy

• Product differentiation

• Product portfolio

Which of the following statements best describes the basic relationship between price and demand?

• As prices rise demand is likely to fall

• As prices rise demand is likely to stay the same

• As prices rise demand is likely to rise

• As prices fall demand is likely to stay the same

Which of the following pricing strategies is most likely to be used for the launch of a new weekly collector’s magazine into a highly competitive market?

• Low price, low profit margin

• Low price, high profit margin

• High price, low profit margin

• High price, high profit margin

In which of the following situations might a business charge a low price?

• When a product has a recognisable brand name

• When there is little or no competition in the market

• When a product is known for its quality

• When a product is no longer in demand due to technological changes

Which of the following bests describes the process of a business establishing a distinct
identity or personality for its products?

• Sponsorship
  

• Branding
  

• Advertising
  

• Promotion
  

A business donates money to a local football team and, in return, the team displays the
name and logo of the business on its kit. This an example of

• Special offers

• Branding

• Sponsorship

• Product trial

A sporting venue directly sends information and updates electronically to people who have
previously bought tickets online. This is an example of the organisation using:

• Viral advertising via social media
  

• Branding
  

• E-newsletters
  

• Special offers