3. Marketing

Question 1

Marketing

Answer 1

identifying customer wants and satisfying them profitably

Question 2

Customer

Answer 2

a person, business or other organisation which buys goods or services from a business

Question 3

Customer loyalty

Answer 3

when existing customers continually buy products from the same business

Question 4

Customer relationship

Answer 4

communicating with customers to encourage them to become loyal to the business and its products

Question 5

Market share

Answer 5

the percentage of total market sales held by one brand or business

Question 6

Mass market

Answer 6

where there is a large number of sales of a product

Question 7

Niche market

Answer 7

a small, usually specialised, segment of a much larger market

Question 8

Market segment

Answer 8

an identifiable sub-group of a whole market in which consumers have similar characteristics or preferences

Question 9

Market research

Answer 9

the process of gathering, analyzing and interpreting information about a market

Question 10

Product-orientated business

Answer 10

one whose main focus of activity is on the product itself

Question 11

Market-orientated business

Answer 11

carries out market research to find out consumer wants before a product is developed and produced

Question 12

Marketing budget

Answer 12

a financial plan for the marketing of a product or product range for some specific period of time, specifies how much money is available to market the product or range, so that the Marketing department may know how much it may spend

Question 13

Primary research

Answer 13

the collection and collation of original data via direct contact with potential or existing customers

Question 14

Secondary research

Answer 14

uses information that has already been collected and is available for use by others

Question 15

Questionnaire

Answer 15

set of questions to be answered as a means of collecting data for market research

Question 16

Online survey

Answer 16

require the target sample to answer a series of questions over the internet

Question 17

Interview

Answer 17

involve asking individuals a series of questions, often face-to-face or over the phone

Question 18

Focus group

Answer 18

a group of people who are representative of the target market

Question 19

Sample

Answer 19

the group of people who are selected to respond to a market research exercise, such as a questionnaire

Question 20

Random sample

Answer 20

when people are selected at random as a source of information for market research

Question 21

Quota sample

Answer 21

when people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research

Question 22

Marketing mix

Answer 22

a term which is used to describe all the activities which go into marketing a product or service. These activities are often summarized as the four Ps - product, price, place and promotion

Question 23

Unique Selling Point (USP)

Answer 23

the special feature of a product that differentiates it from the products of competitors

Question 24

Brand name

Answer 24

the unique name of a product that distinguishes it from other brands

Question 25

Brand loyalty

Answer 25

when consumers keep buying the same brand again and again instead of choosing a competitor’s brand

Question 26

Brand image

Answer 26

an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors’ brands

Question 27

Packaging

Answer 27

the physical container or wrapping for a product. It is also used for promotion and selling appeal

Question 28

Product life cycle

Answer 28

describes the stages a product will pass through from its introduction, through its growth until it is mature, and then finally its decline

Question 29

Extension strategy

Answer 29

a way of keeping a product at the maturity stage of the life cycle and extending the cycle

Question 30

Cost-plus pricing

Answer 30

the cost of manufacturing the product plus a profit mark-up

Question 31

Competitive Pricing

Answer 31

when the product is priced in line with or just below competitors’ prices to try to capture more of the market

Question 32

Penetration pricing

Answer 32

when the price is set lower than the competitors’ prices in order to be able to enter a new market

Question 33

Price skimming

Answer 33

where a high price is set for a new product on the market

Question 34

Promotional pricing

Answer 34

when a product is sold at a very low price for a short period of time

Question 35

Dynamic pricing

Answer 35

when businesses change product prices, usually when selling online, depending on the level of demand

Question 36

Price elastic demand

Answer 36

where consumers are very sensitive to changes in price

Question 37

Price inelastic demand

Answer 37

where consumers are not sensitive to changes in price

Question 38

Distribution channel

Answer 38

the means by which a product is passed from the place of production to the consumer

Question 39

Agent

Answer 39

an independent person or business that is appointed to deal with the sales and distribution of a product or a range of products

Question 40

Promotion

Answer 40

where marketing activities aim to raise customer awareness, of a product or a brand, generating sales and helping to create brand loyalty

Question 41

Advertising

Answer 41

paying for communication with potential customers about a product to encourage them to buy it

Question 42

Informative advertising

Answer 42

where the emphasis of advertising or sales promotion is to give full information about the product

Question 43

Persuasive advertising

Answer 43

advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it

Question 44

Target audience

Answer 44

people who are potential buyers of a product or a service

Question 45

Sales promotion

Answer 45

incentives such as special offers aimed at consumers to achieve short-term increase in sales

Question 46

Marketing budget

Answer 46

a financial plan for the marketing of a product or a product range for a specified period of time

Question 47

Social media marketing

Answer 47

a form of internet marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals. It includes activities such as posting text and image updates, videos, and other content that achieves audience engagement as well as paid social media advertising

Question 48

Viral marketing

Answer 48

when consumers are encouraged to share information online about the products of a business

Question 49

E-commerce

Answer 49

the ‘online’ buying and selling of goods and services using computer systems linked to the internet and apps on mobile (cell) phones

Question 50

Marketing strategy

Answer 50

a plan to combine the right combination of the four elements of the marketing mix for a product or a service to achieve a particular marketing objective(s)