Exercises: Revenue streams and marketing strategies

The marketing mix is summarised by the four Ps: product, price, place and promotion. State which "P" each decision belongs to: choosing the packaging, setting the launch price, selling online only, and purchasing social media adverts.

Classify these businesses according to their main revenue stream (product sales, subscription fee, advertising or brokerage commission): a streaming TV platform, a free online newspaper with ads, an estate agency and a hardware shop.

The figure shows the marketing mix with its components around the business. Identify the missing component, marked with "?", and give an example of a decision for that component for a brand of fresh juices.

A business launches a new soft drink into a market full of similar brands. Explain the difference between a penetration pricing strategy and a price skimming strategy, and reason which one you would choose if the objective is to gain customers quickly.

A productivity app uses a "freemium" model: the basic version is free and the full version costs 120 pesos per month. a) What are its revenue streams? b) Analyse one risk of this model and reason why the free version must be useful yet limited.

A music platform has 850 subscribers paying $\$199.80$ per month. a) Calculate its monthly revenue. b) If the number of subscribers grows by $10\ \%$ and the price does not change, calculate the new monthly revenue. c) Comment on which lever increases revenue more: gaining more customers or raising the price.

Design the complete marketing mix for a backpack brand made from recycled materials aimed at students: define the product (two distinguishing features), the price (with justification), the distribution channel and two promotional actions consistent with the brand.

A shop sells 1 000 T-shirts per month at $\$20$. It estimates that if it lowers the price to $\$16$, it would sell 1 400. a) Calculate the revenue in both cases. b) Reason why lowering the price does not always increase revenue and what this depends on (price elasticity of demand).

A theater company relies almost entirely on ticket sales, and a crisis causes attendance to plummet. a) Explain the risk of having a single revenue stream. b) Propose three realistic alternative or complementary revenue streams for this company and evaluate which one you would implement first.