1.3

Question 1

Marketing mix

Answer 1

A plan for using the right blend of product, price, promotion, and place in order to maximise sales

Question 2

Social trends

Answer 2

Changing patterns in consumer behaviour reflected in
changing demands e.g. increased use of social media/being environmentally friendly

Question 3

Aesthetics

Answer 3

Relates to the appearance of a product

Question 4

Cost

Answer 4

When the business focusses on being economically viable, therefore they aim to minimise costs

Question 5

Design for recycling

Answer 5

Producing products using materials that have been discarded as waste and recycled

Question 6

Design for reuse

Answer 6

When a product is designed to allow for disassembly at the end of its life and the re-use of the materials.

Question 7

Design for waste minimisation

Answer 7

Reducing the quantity of resources that are discarded in the production process

Question 8

Design mix

Answer 8

The combination of elements, (function, aesthetics, cost) that a business considers when creating a product

Question 9

Ethical sourcing

Answer 9

When a business buys materials that are produced with fair
working conditions/pay and minimum impact on the
environment

Question 10

Function

Answer 10

Relates to the quality and reliability of a product

Question 11

Rebranding

Answer 11

A marketing strategy in which a new name, term, symbol,
design or combination is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and/or competitors

Question 12

Resource depletion

Answer 12

The using up of natural resources

Question 13

Advertising

Answer 13

A paid form of communication, used by a business to raise customer awareness of its products, services and brands, to
persuade purchases to be made

Question 14

Customer loyalty

Answer 14

Means that customers will return to the business again and again/favour it over competitors in the same market

Question 15

Digital communications

Answer 15

The electronic transfer of data

Question 16

Direct marketing

Answer 16

Where a business mails out leaflets or letters to households

Question 17

Emotional branding

Answer 17

The creation of brands that may appeal to customers’ emotional nature, rather than their logical side.

Question 18

Corporate branding

Answer 18

Brands created by the producers of goods and services e.g. Kellogg’s cornflakes (bear the producers name)

Question 19

Own brand

Answer 19

Products that are manufactured for wholesalers or retailers by other businesses e.g. Tesco Beans

Question 20

Personal selling

Answer 20

Direct communication between a salesperson and the customer

Question 21

Premium price

Answer 21

Charging a higher price than competitors because of customer loyalty that has been built up over a period of time

Question 22

Generic Branding

Answer 22

Products that only contain the name of the product category rather than the company or product name e.g. Carrots

Question 23

Promotion

Answer 23

The way a business creates demand/awareness for its product/service

Question 24

Public relations

Answer 24

An organisation’s attempt to communicate with interested
parties, usually through unpaid media such as press conferences

Question 25

Sales promotion

Answer 25

Methods of promoting products in the short term to boost sales

Question 26

Social media

Answer 26

Websites and applications that enable users to participate in social networking

Question 27

Sponsorship

Answer 27

A company giving a product or money to support another business or person

Question 28

USP

Answer 28

A feature that differentiates a product from its competitors

Question 29

Viral marketing

Answer 29

Encouraging customers to share information/adverts through existing social media platforms e.g. Facebook

Question 30

Competitive pricing

Answer 30

When a business sets a price similar to competitors selling similar/rival products

Question 31

Cost plus pricing

Answer 31

A cost-based method for setting the prices of goods and services and is calculated by adding a mark-up percentage to the cost of the product

Question 32

Penetration pricing

Answer 32

Setting a low price initially and accepting limited short-term profits/losses in order to build market share before switching to a more profitable and higher price

Question 33

Predatory pricing

Answer 33

Setting a low-price forcing rivals out of the market. This is illegal in the UK but difficult to prove

Question 34

Price comparison websites

Answer 34

A website that compares the price of a particular product or service in different stores or from different businesses

Question 35

Price skimming

Answer 35

Setting a high price at the launch of a product, to gain the money back from R&D and to take advantage of those wanting to be the first people to purchase

Question 36

Pricing strategy

Answer 36

A method used by a business when deciding the price at which a product is sold for

Question 37

Psychological pricing

Answer 37

Tactics that are designed to appeal to a customer’s emotional response to prices

Question 38

Channels of distribution

Answer 38

Methods used by businesses to get their products from manufacture to consumer. They can include intermediaries such as wholesalers and retailers

Question 39

Distribution

Answer 39

Getting products to the right place for customers and at the right time

Question 40

Distribution channels

Answer 40

The methods by which a product gets from the manufacturer to the consumer

Question 41

Distribution strategy

Answer 41

A plan to get a product or service to the customer

Question 42

4 stage distribution channel

Answer 42

Manufacturer/producer to wholesaler to retailer, then consumer. Examples include groceries and confectionery

Question 43

E commerce

Answer 43

The use of electronic systems to sell goods and services

Question 44

Place

Answer 44

Where the product can be purchased and is also the process of making a product or service available to the consumer

Question 45

Product

Answer 45

A tangible item offered for sale

Question 46

Service

Answer 46

The non-physical, intangible parts of our economy, as opposed to goods, which we can touch

Question 47

3 stage distribution channel

Answer 47

Manufacturer/producer to retailer, then consumer. Examples include electrical goods and cars

Question 48

2 stage distribution channel

Answer 48

A direct marketing approach with no intermediary levels e.g. Manufacturer/producer to consumer

Question 49

Boston matrix

Answer 49

A method used to analyse the product portfolio of a business

Question 50

Business to Business

Answer 50

When a business promotes the sale of products/services to other businesses for use in their operations

Question 51

Business to customer

Answer 51

Where a company targets to sell its products to individual customers

Question 52

Customer loyalty

Answer 52

A preference for a product or brand based on experience and/or an emotional attachment, which inclines buyers to repeat purchases and away from rivals

Question 53

Extension strategy

Answer 53

A method used to lengthen the life/sales of a product/service

Question 54

Marketing objective

Answer 54

A goal the business aims to achieve through its marketing activities

Question 55

Marketing strategy

Answer 55

The methods used/plan/way chosen to achieve marketing objectives

Question 56

Portfolio analysis

Answer 56

When business considers each of its products in the context of its market position

Question 57

Product life cycle

Answer 57

The stages that a product goes through from introduction to decline

Question 58

Product portfolio

Answer 58

The collection/range/ list of items/products produced/sold/ offered by a business