Establishing Marketing Mix: Key Characteristics, Pricing Strategies, and Promotional Methods

Business, Accounting and Finance
BSBMKG502 Establish and adjust the
marketing mix
Student Assessment
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Version 1.0
RTO: 41422 CRICOS: 03590D

Written Questions and Answers
Assessment is all about collecting evidence and making decisions
as to whether or not a student has achieved competency.
Students are required to answer all the questions. Evidence is
information gathered that provides proof of competency. While
evidence must be sufficient, trainers and assessors must focus on
the quality of evidence rather than the quantity of evidence.
1 Identify the key characteristics of products or services and
estimate their significance to the market. Please describe and
expand to include 4 & 7 Ps, 3 major pricing strategies, at least 2
distribution strategies, characteristics of service and the
products such as PLC Stages.
The key characteristics of products or services are perishability,
fluctuating demand, intangibility, inseparability, heterogeneity, service
quality and pricing of services. There is a major significance of these
characteristics to the market and these are parts of PLC stages.
Marketing mix is one of the most significant requirement for any product
or service and 7Ps are parts of this mix. These 7Ps are process, people,
physical evidence, price, place, product and promotion.
3 major pricing strategies are pricing for market penetration, pricing at a
premium and economy pricing. 2 distribution strategies are indirect
distribution and direct distribution. These are required for effectively
getting the product to consumers as well as end users. The firms could
sell their products directly or through intermediaries.
2. As a manager when you are reviewing the pricing policy and
analysing pricing variables to determine their effect on demand,
what are some key factors? You need to consider the pricing
procedure, 4Cs, what pricing variables support the pricing policy,
company considerations and pricing decisions associated with
costs.
The key factors that are to be reviewed the pricing policy and analyse
pricing variables are divided into two types, which are internal factors
and external factors. The internal factors can be stated as marketing
objective, marketing mix, cost as well as organizational set up. The
external factors can be stated as market or demand, competition and
other environmental factors. Moreover, 4Cs of communication,
convenience, costs and customer value are also considered here. The
effect on demand for reviewing pricing policy are checked by pricing
variables like revenue management, price discrimination, inventory,
dynamic pricing and forecasting.
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RTO: 41422 CRICOS: 03590D 2 | P a g e

3. After an analysis on promotional methods in your organisation,
explain how you determine their importance to the marketing
outcomes.
Promotional methods are utilized for any product as well as family of
products. The elements of promotion mix eventually involve broadcast
advertising, merchandising, point of sale displays and direct marketing.
Marketing of brand and product is important for including separate
aspects of selling and promotion of products to the customers. The
importance of these specific promotional methods towards the
marketing outcomes include proper development of marketing plan,
understanding the clients, development of financial goals and strategic
business planning.
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RTO: 41422 CRICOS: 03590D 3 | P a g e

4. Explain the results from a review on channels of distribution in
your organisation and estimate their significance to marketing
outcomes.
The channel of distribution is the chain of intermediaries and businesses
through which the good or service passes until and unless it could reach
the end user. It could involve the distributors, retailers, wholesalers and
also the Internet. There are eventually two major kinds of channels
within marketing, which are direct distribution channels and indirect
distribution channels.
The major significance of channels of distribution to marketing
outcomes would be that it is quite vital in any one place while the
overall consumption is scattered in many places.
5. Explain how you would identify and analyse the level of
customer service provision to determine its significance to
marketing outcomes.
Customer services are the service provisions to customers before and
after a purchase. The perception of success of these interactions is
eventually dependent on the employees for better execution of
processes. The five customer service levels are unacceptable, basic,
good, world class and trademark. There is a major significance of proper
analysis of levels of customer-service provision to the marketing results,
which is higher competition and reputation in the market.
6. What do you need to consider when identifying the
organisation’s potential customer base and key pressure points?
For identifying the organizational potential customer base and key
pressure points, at first, it is required to identify how the market is being
divided for the products and different customer groups like
demographics, benefits, behaviour and geography. Market segments
should also be evaluated and marketing goals are found out.
7. Part of an effective marketing plan, you need to analyse and
test effect of components of marketing mix on each other and
establish their relative importance to the customer base. What
are some of the things you need to do?
The major components of marketing mix are 4Cs and 4Ps. The 4Cs are
communication, convenience, cost and collaboration. The 4Ps are
product, price, promotion and place. The four broad levels off
independent and interconnected variables should be represented for
completing marketing mix and also to promote the brand’s unique
value.
Version 1.0
RTO: 41422 CRICOS: 03590D 4 | P a g e