1.3 keywords

Question 1

design

Answer 1

The process of creating a new product or service.

Question 2

prototype

Answer 2

A test model of a planned design used to see if it functions properly with durability, reliability and safety.

Question 3

branding

Answer 3

The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products.

Question 4

sustainability

Answer 4

Making a product that uses materials that will be around for future generations.

Question 5

corporate brand

Answer 5

A brand that represents the whole company as well as its products. For example, every JCB construction vehicle features the JCB company logo.

Question 6

capacity utilisation

Answer 6

This measures actual usage of your facilities as a percentage of the maximum possible, eg a half empty hotel has 50% capacity utilisation.

Capacity Utilisation = Actual Output / Maximum Output x 100

Question 7

price

Answer 7

The amount paid by a customer for a good or service.

Question 8

pricing tactics

Answer 8

The use of pricing tools over the short term in response to opportunities and threats.

Question 9

skimming pricing

Answer 9

Setting a high price initially to maximize profit per unit then lowering it at a future date.

Question 10

penetration pricing

Answer 10

Setting a low price when launching a new product in order to get established in a market.

Question 11

cost plus pricing

Answer 11

Adding a percentage mark-up to the costs of producing a product to get the price.

Question 12

competitive pricing

Answer 12

Pricing strategies based on the prices charged by rival firms.

Question 13

predatory pricing

Answer 13

Setting a lower price than average in attempt of forcing rivals out of business.

Question 14

physiological pricing

Answer 14

Setting a price slightly below a rounded figure e.g. £9.99.

Question 15

loss leader pricing

Answer 15

Pricing a product below cost in order to attract further, profitable business.

Question 16

ethical sourcing

Answer 16

Using materials, components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity.

Question 17

opportunity cost

Answer 17

The cost of missing out on the next best alternative when making a decision (for committing resources).

Question 18

product life cycle

Answer 18

Describes the stages a product goes through from when it was first thought of until it finally is removed from the market.

Research & Development, Introduction, Growth, Maturity, Decline, Extension

Question 19

wholesaler

Answer 19

The middleman between the producer and retailers, who breaks bulk down from container lorry-loads into manageable parcels, such as a case of 12.

Question 20

barrier to entry

Answer 20

Factors that make it hard for new firms to break into an existing market e.g. strong brand loyalty to the current market leaders.

Question 21

e-commerce

Answer 21

Electronic commerce - transactions carried out online.

Question 22

extension strategy

Answer 22

Marketing activities used to prevent sales from declining.

Question 23

Boston matrix

Answer 23

A model used to analysis a firm’s product portfolio by considering market share in relation to market growth

Question 24

portfolio analysis

Answer 24

An analysis of the market position of a firm’s existing products. It is used as part of the marketing planning process.

Question 25

cash cow

Answer 25

A product that has high market share and low market growth.

Question 26

problem child

Answer 26

A product that has low market share and high market growth.

Question 27

rising star

Answer 27

A product that has high market share and high market growth.

Question 28

dog

Answer 28

A product that has low market share and low market growth.

Question 29

marketing mix

Answer 29

The combination of elements of marketing that are used to influence customer buying habits (Price, Product, Place, Promotion).