3.3

Question 1

What is marketing

Answer 1

• The process of advertising a product in order to get a product to the customer, whilst making profit

Question 2

What is a marketing objective?

Answer 2

• Precise and detailed statements of the aims/goals of companies in the realm of marketing

Question 3

What are some examples of marketing objectives?

Answer 3

• Increased market share
• Sales growth
• Sales volume and value

Question 4

What is the formula for calculating market share

Answer 4

• Total units sold / total units sold in a market x100

Question 5

What are the causes of a decreased market share?

Answer 5

• Increased competition
• Increased costs
• Change in consumer demand

Question 6

What are some ways to increase market share?

Answer 6

• Decrease price of product
• Innovate
• Improve advertising

Question 7

What are some internal factors that influence objectives?

Answer 7

• Finance
• HR
• Operational issues

Question 8

What are some external factors that influence objectives

Answer 8

• Economic environment
• Competitor actions
• Technological change

Question 9

What is the acronym to identify external factors in a business?

Answer 9

Political
Economic
Social
Technological
Legal
Ethical/Environmental

Question 10

What are the advantages of primary research?

Answer 10

• Specific to the immediate data needs and topic
• Offers behavioural insights, not available from secondary research
• Up to date

Question 11

What are the disadvantages of primary research?

Answer 11

• Costly
• Time consuming
• Requires more sophisticated training and experience to design, study and collect data

Question 12

What are the advantages of secondary research?

Answer 12

• Saves time
• Free or inexpensive (except for syndicated data)

Question 13

What are the disadvantages of secondary research?

Answer 13

• May not be precisely relevant to information needs
• Information may not be timely
• Sources may not be original, and therefore usefulness is an issue
• Methodologies for collecting data may not be appropriate
• Data sources may be biased and available to competitors

Question 14

What is PED?

Answer 14

• The responsiveness of demand to changes in price
• The value is always negative
• % ∆QD / % ∆P × 100

Question 15

What is an inelastic product?

Answer 15

• A product where an increase in price will lead to an increase in revenue
• Less than 1

Question 16

What is an elastic product?

Answer 16

• A product where an increase in price will lead to a decrease in revenue
• More than 1