3 marketing

Question 1

marketing objectives

Answer 1

-sales volume and value
-market size
-market sales and growth
-market share
-brand loyalty

Question 2

primary research

Answer 2

positives:
-customisable: to find specific results and area
-Up to date
-Confidential data
-Relevance of data (questions set by themselves, more suitable)

negatives:
-More expensive (depends)
-Time consuming(both analysing and collecting)
-Invalid sampling (different interpretation)

Question 3

secondary research

Answer 3

positives:
-Reliable (research experts)
-Ease of access
-Generally cheaper

negatives:
-Time consuming(not able to find the needed resources)
-Data might be out of date
-Irrelevant
-unreliable(false data)

Question 4

correlation

Answer 4

positive and negative correlation
dependent and independent variable

Question 5

confidence interval

Answer 5

possibility of accuracy

Question 6

extrapolation

Answer 6

Trends established from historical data to forecast the future , usually for sales forecast

Question 7

sampling

Answer 7

-quota
-stratified
-random

Question 8

use of segmentation, targeting and positioning

Answer 8

understanding the behaviour of customers

Question 9

segmentation

Answer 9

segmentation : process of grouping potential customers together by common characteristics

demographic, geographic, income, behavioural

Question 10

targeting

Answer 10

deciding which segment of market to focus on

Question 11

niche market

Answer 11

smaller segment of a larger market (specific needs and wants)

Question 12

mass market

Answer 12

sells into largest part of market (similar products offered by competitors)

Question 13

positioning

Answer 13

where the product is placed in the market → marketing mapping (in quality and price)

Question 14

market mapping

Answer 14

two dimensions can be chosen: e.g. price, quality, health…

Advantages of positioning maps:
-spot gaps in the market
-analysing competitors
-encourages use of market research

Disadvantages of positioning maps:
-a “gap” doesn’t mean there is demand for the product
-Not a guarantee of success
-How reliable is the market research that maps the position of existing products based on the chosen dimensions?

Question 15

marketing mix

Answer 15

Each element of the marketing mix is related to each other. They work together to achieve the desired effect.

It is dynamic : changes overtime

Question 16

influences to the changes of marketing mix

Answer 16

-The market (target audience)
-The nature of market (what the market wants) -> -affects the price and quality
-Market research findings
-Positioning to competitors
-Internal constraints ( finance and talents)
-External influences
-Technological changes

Question 17

product portfolio

Answer 17

It is the range of product a business provides

Question 18

Boston Matrix

Answer 18

It is a model that helps to analyse the product portfolio of the business.
-market share and growth

Star
Cash cow
Question mark
Dogs

Question 19

product life cycle

Answer 19

Introduction
Growth
Maturity
Decline

-> extension strategy

Question 20

extension strategy

Answer 20

a method for a business to increase sales when in a saturated market (maturity stage in the product life cycle)

types of extension strategy (SPAM):
- segments
- price
- advertising
- markets

Question 21

difference of Boston Matrix and Product life cycle

Answer 21

Product life cycle: individual products; concerned for sales over time

Boston matrix: firm’s portfolio; focus on cash flow of product

Question 22

pricing methods

Answer 22

price penetration: using a low price to break into the market
price skimming: starts from very high price, then slowly lower it by time
predatory pricing: using a ridiculously low price to drive competitors out of the competition

Question 23

place (distribution channel)

Answer 23

-traditional
-modern
-direct

Question 24

promotional mix

Answer 24

-branding
-social media
-viral marketing
-advertising
-merchandising

Question 25

informative vs persuasive promotion

Answer 25

• informative: deliver a benefit/fact → raise awareness
• persuasive: encourage the want of buying the product