2.1.1 Marketing

Question 1

define market research

Answer 1

process of gaining information about customers, competitors and market trends through collecting primary and secondary data

Question 2

define primary research

Answer 2

any type of research that you go out and collect yourself eg. questionnaire

Question 3

define secondary research

Answer 3

involves collation and analysis of existing research eg. newspaper articles

Question 4

explain why market research is important

Answer 4

• to ensure product(s) are successful
• to avoid costs of making product
• to avoid wasting time
• helps establish who target market is

Question 5

define socio-economic groups

Answer 5

way of grouping consumers based on the occupation of the head of the household. occupation of person affects amount of money they earn and s how businesses target products

Question 6

what is market segmentation

Answer 6

way of dividing people into different market segments

• age
• social class
• location
• culture or region
• gender

Question 7

describe the different socio-economic groups

Answer 7

A- higher professional eg. doctor
B- intermediate professional eg. teacher
C1- skilled non-manual eg. supervisory workers
C2- skilled manual eg. plumber
D- part skilled eg. cleaner
E- unskilled eg. unemployed

Question 8

what is the significance of SWOT analysis in marketing context

Answer 8

can help business come up with ideas.
SWOT- Strengths, Weaknesses, Opportunities, and Threats
-strengths will help business move forward
-weaknesses may harm business
-opportunities outside of business but may be helpful
-threats are factors outside business that might be harmful

Question 9

give 2 types of market

Answer 9

consumer markets and industrial markets

Question 10

describe consumer markets

Answer 10

markets for products and services bought by individuals for their own or family use.

Question 11

describe industrial markets

Answer 11

involve the sale of goods between businesses. These are goods that are not aimed directly at consumers. Industrial markets include
• Selling finished goods
• Selling raw materials or components
• Selling services to businesses

Question 12

describe the marketing mix

Answer 12

• product, people want to buy, fulfil customer needs/wants
• price, must be one that customers think is good value for money
• promotion, so that potential customers aware product exists
• place, old in place that customer find convenient

Question 13

describe how marketing mix evolves over time

Answer 13

customers needs/wants change over time , business should adapt marketing mix to meet these changing needs

Question 14

describe growing sales as a marketing strategy

Answer 14

• launch new products
• expand distribution eg. open more stores
• start selling products overseas

Question 15

describe increasing profits as marketing strategy

Answer 15

• increase selling price

- reduce amount spent on advertising/ reduce costs

Question 16

describe building customer awareness as a marketing strategy

Answer 16

• implement a public relations programmes

- invest more in advertisement

Question 17

define promotion

Answer 17

concerned with how a business informs customers about their product or service

Question 18

how might a business choose which promotional methods are appropriate

Answer 18

• cost of promotion
• size of target market
• nature of product
• who targeted consumers are

Question 19

give 4 methods of promotion

Answer 19

• social media
• public relation
• in store offers
• billboards

Question 20

define e-commerce

Answer 20

the bringing together of buyers and sellers electronically. generally used as selling via the internet

Question 21

explain why there is pressure to change to e-commerce

Answer 21

• competition offers online shopping
• save money on staffing and rent
• larger target audience
• changing consumer trends

Question 22

benefits of e-commerce

Answer 22

• competitors are doing it
• more convenient
• business open 24/7
• easy for customer to compare products online

Question 23

problems of e- commerce

Answer 23

• expensive
• profit margins low due to cot of delivery and staff to pack orders
• don’t get products immediately

Question 24

give 6 examples of good customer service

Answer 24

• accurate product information
• reliability
• dealing with customer questions and concerns
• fulfilling order requirements
• delivering on time
• after-sales support and warranties

Question 25

explain benefits of good customer service for a business

Answer 25

• good customer service= high levels of customer satisfaction , more likely to repeat purchases
• satisfied customers more likely to recommend business

Question 26

describe how firms deal with ethical issues

Answer 26

• unfair exploitation of cheap labour in LICs, so firms import raw materials from fair trade sources
• when promoting products, firms expected to follow codes of practice, being dishonest or slating other brands not allowed
• firms under pressure to carry out product development in ethical way, means using non-toxic materials, paying close attention to safety and not using animal testing

Question 27

how do ethical issues affect a business’s competitiveness

Answer 27

• if business uses cheap labour from LICs, will be able to sell products cheaper
• if business uses fair trade workers, high wages increase company’s cost so products sold at higher prices
• a more ethical business may gain customers and increase its profits, lots people think treatment of workers more important than price