2.2 Making marketing decisions

Question 1

Aesthetics

Answer 1

Aesthetics: how things appeal to the senses;
do they look great, smell good, feel nice, sound
solid

Question 2

Economic manufacture

Answer 2

Economic manufacture: making the product
cheaply enough to make it profitable.

Question 3

Extension strategy

Answer 3

Extension strategy: an attempt to prolong
sales of a product for the medium to long term,
to prevent it from entering its decline stage.

Question 4

Function

Answer 4

Function: how well the product or service
works for the customer;

Question 5

Product differentiation

Answer 5

Product differentiation: the extent to which
consumers see your product as being distinct
from its rivals.

Question 6

Product life cycle

Answer 6

Product life cycle: the theory that every
product goes through the same four stages of
introduction, growth, maturity and decline.

Question 7

Profit margins

Answer 7

Profit margins: profit as a percentage of the
selling price (one unit) or as a percentage of
total sales revenue (for the business as a whole).

Question 8

Branding

Answer 8

Branding: giving your product or service a
name that helps recall and recognition, and
gives a sense of personality.

Question 9

E-newsletters

Answer 9

E-newsletters: regular updates on the
activities of a business sent electronically to
actual or potential customers.

Question 10

Promotional strategy

Answer 10

Promotional strategy: a medium- to long-term
plan for communicating with your target
customers.

Question 11

Sponsorship

Answer 11

Sponsorship: when companies pay to have a
brand associated with an iconic individual or
event (usually connected with sports or the arts).

Question 12

Viral advertising

Answer 12

Viral advertising: when people start to spread
your message for you through social means, be
it word of mouth or via social media.