3 MARKET RESEARCH - 3.3 Marketing Research

Question 1

Define Marketing Mix

Answer 1

1. Product
2. Price
3. Promotion
4. Place

Question 2

Define Product

Answer 2

the end result of a production process

Question 3

Define Tangible Attributes

Answer 3

those that can be measured

Question 4

Define Intangible Attributes

Answer 4

those that are subjective, can not be compared and measured easily

Question 5

Define Product Development

Answer 5

development and sales / new products / new developments of the existing products in existing markets

Question 6

Define USP

Answer 6

factor differentiating between the product from its competitors
(“what you have that competitors don’t”)

Question 7

Define Product Life Cycle

Answer 7

the pattern of sales recorded by a product from introduction to withdrawal in the market

Question 8

Define Product-Portfolio Analysis

Answer 8

a range of existing products of the business is analysed to help allocating resources effectively between them

Question 9

Define Extension Strategies

Answer 9

Market plans that extend the maturity stage of a product before a brand new one is needed
(repackaging, selling in new markets, marketing for new uses etc)

Question 10

What are the different Pricing Strategies?

Answer 10

1. Competitive Strategy
2. Penetration Strategy
3. Skimming Strategy
4. Price Discrimination Strategy
5. Cost-Based Strategy

Question 11

Define the Competitive pricing strategy

Answer 11

some / lower prices than those of competitors

Question 12

Define the Penetration pricing strategy

Answer 12

Low price, high promotion, mass marketing

Question 13

Define the Skimming pricing strategy

Answer 13

Low PED, strong USP, maximising profits

Question 14

Define the Price Discrimination pricing strategy

Answer 14

Different prices to different consumer groups at the same time

Question 15

Define the Cost-Based pricing strategy

Answer 15

A price is set after calculating the unit cost and adding a fixed profit margin

Question 16

What are the 2 types of Promotion?

Answer 16

1. Above-the-line promotion

2. Below-the-line promotion

Question 17

Define Above-the-line promotion

Answer 17

paying communication directly with the consumer

Question 18

Define Below-the-line promotion

Answer 18

not paid directly, based on short term incentives to purchase

Question 19

Define Personal Selling

Answer 19

a member of the sales staff communicates with one consumer aiming to sell a product and to build a long term relationship between the consumer and the product

Question 20

Define Public-Relations

Answer 20

deliberately using free publicity to communicate with and understand the public
(free publicity can be newspapers, TV and other media)

Question 21

Define Brand

Answer 21

and identifying name, symbol, image / trademark differentiating the products from its competitors’

Question 22

What is the role of Packaging in Promotion?

Answer 22

1. Protects
2. Provides information
3. Supports image > product recognition

Question 23

Define the Channels of Distribution

Answer 23

a chain of intermediaries that a product passes through from the final producer to the final product

Question 24

On what basis is COD (Channels of Distributions) chosen?

Answer 24

1. Geographical Dispersion
2. Size of the Market
3. Level of Service
4. Technical Complexity
5. Unit Value

Question 25

What are the types of COD (Channels of Distributions)?

Answer 25

1. Direct Selling
   - Producer > Consumer
2. One Intermediary
   - Producer > Agent / Larger wholesaler > Consumer
3. Two Intermediaries
   - Producer > Wholesaler > Retailer

Question 26

Define Internet Marketing

Answer 26

Using the internet to advertise and market activities

email and mobile communication encouraging direct sales via e-commerce

Question 27

Define E-Commerce

Answer 27

When goods and services are bought and sold by businesses and consumers via an electronic medium

Question 28

Define Integrated Marketing Mix

Answer 28

Marketing decisions that complement each other and convey a consistent message about the product