3 business definitions section 3

Question 1

Marketing

Answer 1

The process of identifying, anticipating and satisfying customer needs profitably

Question 2

Marketing research

Answer 2

involves the gathering and analysis of research to help support the implementation of marketing strategy

Question 3

Primary research

Answer 3

Data collected first-hand for a specific research purpose

Question 4

Secondary research

Answer 4

Data that already exists and which has been collected for a different purpose

Question 5

Quantitative research

Answer 5

research based on numerical data

Question 6

Qualitative research

Answer 6

research based on views and opinions

Question 7

Price

Answer 7

The money charged for a product or a service

Question 8

Price skimming

Answer 8

Charging a premium price when a product is first launched (if new in the market) in order to maximize revenue per unit (when competitors enter the market, the price goes down)

Question 9

Penetration pricing

Answer 9

Offering a significantly lower price than normal in an attempt to maximize volume sold and to build an installed base of product users

Question 10

Dynamic pricing

Answer 10

Setting flexible prices for products or services based on current market demands

Question 11

Direct/

Indirect distribution

Answer 11

Producer and consumer deal directly.

Involves the use of an intermediaries between the producer and the consumer

Question 12

Distribution channel

Answer 12

The route a product takes from production to final consumption

Question 13

Multichannel distribution

Answer 13

Where a business uses more then one channel of distribution

Question 14

Product

Answer 14

Anything that is capable of satisfying customer needs and wants

Question 15

Product life cycle model

Answer 15

A theoretical model that describes the stages a product goes through over its life.
Used for: forecast future sales trends and help with market targeting and positioning
5 stages: Development, Introduction, Growth, Maturity, Decline/End

Question 16

The Boston Matrix

Answer 16

A model used to analyze the strategic position of product and brand portfolios
4 Areas: Question marks, Stars, Dogs snd Cash cows.
Measured in market share and market growth

Question 17

Market growth

Answer 17

The number of potential customers in the market growing or not

Question 18

Market share

Answer 18

Does the product being sold have a low or high market share?

Question 19

Marketing Mix

Answer 19

The combination of elements used by a business to enable it to meet the needs and expectations of a customer

Question 20

What are the 7P´s?

Answer 20

Product, Price, Promotion, Place, People, Process, Physical

Question 21

Market segmentation

Answer 21

Involves dividing the market into different segments that reflect different customer needs and wants

Question 22

Elasticity

Answer 22

Measures the responsiveness of demand to a change in a relevant variable-such as price and income

Question 23

Formula of Price elasticity (PED)

Answer 23

%Change in quantity demanded / %Change in price

Question 24

Formula of elasticity of demand (IED)

Answer 24

%Change in quantity demanded / %Change in income

Question 25

Price elasticity of demand

Answer 25

Measures the extent if which the quantity of a product demanded is affected by a change in price

Question 26

Income elasticity of demand

Answer 26

Measures the extent to which the quantity of a product demanded is affected by a change in income

Question 27

Extrapolation

Answer 27

Involves the use of trends established by historical data to make predictions about future values

Question 28

The role of marketing

Answer 28

The process of identifying, predicting and satisfying customer needs profitably