2.3 Marketing

Question 1

What is marketing?

Answer 1

The strategic process of promoting and selling products or services by understanding customer needs, creating value, and effectively communicating with the target audience

Question 2

What is market research?

Answer 2

The process of collecting and analysing customer information

Question 3

What is the target market?

Answer 3

A specific group of potential customers that the business aims to reach and serve with its products or services

Question 4

What are the factors of a target market?

Answer 4

• Demographic
• Psychographic
• Behavioural
• Geographic

Question 5

What is a demographic (in terms of target market)?

Answer 5

Characteristics such as age, gender, income level, education, marital status

Question 6

What is a psychographic (in terms of target market)?

Answer 6

What motivates customers?
These factors include attitudes, values, interests and lifestyles

Question 7

What is a behavioural factor (in terms of target market)?

Answer 7

Includes the purchasing behaviours, brand loyalty, usage rate and buying frequency of customers.
For example, will customers always buy from the same brands regardless of price? Will they buy weekly or monthly? Will they consume a product frequently or occasionally?

Question 8

What is a geographical factor (in terms of target market)?

Answer 8

These factors involve the physical locations and regions where the target market resides.
Is it a rural area or urban area? Is it a hot climate or cold climate?

Question 9

What is market segmentation?

Answer 9

The dividing up of the market into different groups of customers that share similar characteristics.

By doing this a business is able to determine which customers’ needs and preferences are likely to be satisfied by the product

Question 10

What are the 4 P’s of marketing?

Answer 10

-Product
-Price
-Place
-Promotion

Question 11

Why is finding the target market important?

Answer 11

It helps the business focus its efforts and resources on the people who are most likely to become customers

Question 12

What are market segmentation dimensions?

Answer 12

Demographic
- Age, gender, income, education, nationality, occupation
Geographic
- Size of city, rural or urban, climate
Psychographic
- Lifestyle, personality traits, hobbies, attitudes, socioeconomic status
Behavioural
- Regular or first time user, purchasing frequency, usage rate

Question 13

What is a product?

Answer 13

The physical product or service being offered to customers. It involves decisions about features, quality, design, branding, and differentiation. Businesses must ensure their product meets customer needs and stands out in the market

Question 14

What are the product considerations?

Answer 14

• Branding
• Design
• Quality
• Packaging

Question 15

What is branding and its aim?

Answer 15

Involves creating a name, design or logo that are recognisable and memorable. Stand out from competitors with distinctive brand name and logo

Question 16

What is design and its aim?

Answer 16

Creating and developing a product that has the features need to fulfil its purpose. Features are able to fulfil the needs of customers

Question 17

What is quality and its aim?

Answer 17

Degree to which the product fulfils its purpose without defects. Achieves customer’s desired quality and is reliable

Question 18

What is packaging and its aim?

Answer 18

Designing what the product will be presented in – how customers will see it. Improve customer perception and stand out from competition

Question 19

What is price?

Answer 19

The amount of money customers are expected to pay for the product or service. (Must consider: production, competition, perceived value of the good or service, and pricing strategies)

Question 20

What are the price adjustment strategies?

Answer 20

Involves altering the price of a good or service to respond to changing market conditions, customer behaviours, or promotional objectives

Question 21

What is a price adjustment strategy?

Answer 21

• Promotional pricing
• Psychological pricing
• Price matching

Question 22

What are the 4 p’s of marketing?

Answer 22

• Product
• Price
• Place
• Promotion

Question 23

What is promotional pricing?

Answer 23

Offering special deals or limited-time offers to create urgency and attract customers

Question 24

What is psychological pricing?

Answer 24

Using pricing tactics that leverage consumer psychology, like setting prices just below a round number

Question 25

What is price matching?

Answer 25

Matching competitors’ price to prevent customers from shopping elsewhere

Question 26

What is place?

Answer 26

The distribution channels and locations through which customers can access the product or service. Ensuring that customers can conveniently access and purchase the products where and when they want.

Question 27

What is direct distribution?

Answer 27

Involves selling products directly to customers without intermediaries

Question 28

What is indirect distribution?

Answer 28

Involves using intermediaries like retailers or distributors to reach customers

Question 29

What is promotion?

Answer 29

The various activities used to communicate and promote the product to the target audience. Effective promotion creates awareness, interest, and desire among customers, driving them to make a purchase

Question 30

What are the types of promotion?

Answer 30

• Advertising
• Personal selling
• Direct Marketing
• Social Media Marketing
• Influencer Marketing

Question 31

What is advertising?

Answer 31

Paid messages (typically broadcast through mass media) that aim to reach a wide audience and create brand awareness. Advertising can be in the form of TV commercials, radio commercials, print ads, banner ads & billboards.

Question 32

What is personal selling?

Answer 32

Direct interactions between salespeople and potential customers. This approach allows for personalised communication and tailored product recommendations. Personal selling is often used for higher-priced products or complex solutions where detailed information is required such as cars and technological products

Question 33

What is direct marketing?

Answer 33

Sending personalised messages directly to individuals through channels like email, direct mail, SMS, and telemarketing. It allows for one-to-one communication and can be highly targeted based on customer preferences and behaviour

Question 34

What is social media marketing?

Answer 34

Leverages social platforms like TikTok, Facebook, Snapchat and Instagram to connect with the target audience. Businesses can share content, engage in conversations, and run targeted ad campaigns to reach users based on a business’s target market

Question 35

What is influencer marketing?

Answer 35

An extension of social media marketing and advertising, influencer marketing involves collaborating with individuals who have a substantial following and influence in a specific niche. Influencers promote products or services to their audience, leveraging their credibility and reach

Question 36

What is the psychology of advertising?

Answer 36

Using the science of psychology to understand how people think, feel, and behave to then create advertisements that capture their attention, persuade them to like a product or service, and ultimately encourage them to buy it

Question 37

How can psychological advertising be used?

Answer 37

• Nostalgia
• Emotional appeal
• Creating a sense of urgency
• Humor

Question 38

What is creating a sense of urgency in advertising?

Answer 38

Creating a sense of scarcity (limited availability) and urgency (limited time) in advertisements can trigger the fear of missing out (FOMO), driving consumers to take action quickly

Question 39

What is using nostalgia in advertising?

Answer 39

Ads that tap into nostalgia (positive feelings of the past) can trigger positive emotions and help consumers connect with the past, often resulting in a more favourable view of the brand

Question 40

What is emotional appeal in advertising?

Answer 40

Advertisements that evoke strong emotions—such as happiness, fear, or empathy—tend to be more memorable and can lead to a deeper connection with the brand

Question 41

What is humour in advertising?

Answer 41

Humorous advertisements can create positive associations and make the brand more memorable, improving the likelihood of consumers engaging with the content