3. Marketing

Question 1

Marketing objectives

Answer 1

-Market size
-Market share
-Market and Sales growth
-Sales volume and Sales value
-Brand loyalty

Question 2

Market size

Answer 2

Total sales value or sales volume in a market

Question 3

Market share

Answer 3

Proportion of total market sales

Question 4

Market and Sales growth

Answer 4

Percentage increase in size of market by value or volume over period of time

Question 5

Sales volume and Sales value

Answer 5

Amount of sales expressed as number of units

Question 6

Brand loyalty

Answer 6

Customers keep returning to buy certain brand

Question 7

Market research

Answer 7

Primary - surveys, interviews, questionnaires
Secondary - internet, newspapers, cheap
Qualitative - non-statistical data that informs firm about reasons for people’s behaviour
Quantitative - statistical data that informs firm about people’s behaviour

Question 8

Sampling techniques

Answer 8

Random - sample selected from population chosen by chance, difficult to achieve
Quota - population segmented into subgroups before judgement is made
Stratified - population segmented into subgroups before respondents are randomly selected from within that subgroup

Question 9

Marketing data

Answer 9

-Devises strategy
-Understanding the market
-Informs decision making

Question 10

Confidence intervals

Answer 10

Reflect degree of certainty a business believes something will happen

Question 11

Extrapolation

Answer 11

Identifies trends, past is not good indication of future

Question 12

PED

Answer 12

-Measures how responsive demand is to price
-Price elastic when change in price causes more proportion in demand
-Price inelastic when change in price causes less proportion in demand

Question 13

YED

Answer 13

-Measures how responsive demand is to income
-Income elastic when change in demand causes less proportion than income
-Income inelastic when change in demand causes more proportion than income

Question 14

Market segmentation

Answer 14

Market split into subgroups of consumers with similar characteristics, identifies most profitable customers
-Demographic e.g. age, gender, race
-Geographic e.g. regions, cities
-Income
-Behavioural e.g. brand loyalty, method of purchase

Question 15

Targeting and Positioning

Answer 15

Targeting - process of deciding which segment of market to focus on
Positioning - where product is placed in market relative to competitors

Question 16

Marketing mix

Answer 16

Price
Place
Product
People
Process
Promotion
Physical environment

Question 17

Boston matrix

Answer 17

Cash cow - high market share + low market growth
Problem child - low market share + high market growth
Rising star - high market share + high market growth
Dog - low market share + low market growth

Question 18

Product life cycle

Answer 18

Research and Development
Introduction
Growth
Maturity
Decline
Extension

Question 19

Pricing techniques

Answer 19

Price skimming - set high initial price
Dynamic pricing - prices change quickly in response to demand
Penetration pricing - set low initial price

Question 20

Promotional mix

Answer 20

Combination of promotional activities a firm uses to create generate sales
-Branding - creation of identity for firm
-Public relations - communication with media
-Merchandising - way a firm promotes its products and the way it’s presented
-Advertising - firms pay for promotion of their product through main media
-Sponsorships - funds provided for sporting or social event in return for display of sponsor’s company

Question 21

Distribution channels

Answer 21

Routes to market that product takes
-Manufacturer
-Wholesaler
-Retailer
-Consumer

Question 22

Digital marketing

Answer 22

Any form of digital technology to improve communications with customers

Question 23

E-commerce

Answer 23

When buyers and sellers meet to trade in virtual marketplace

Question 24

M-commerce

Answer 24

Same as E-commerce but specific to mobile

Question 25

Value of digital marketing and E-commerce

Answer 25

Access to global market
Greater communication
Greater word of mouth