3.3 Marketing

Question 1

What are the five key tasks of marketing?

Answer 1

Identify target markets, market research, product development, devise a marketing mix and market monitoring

Question 2

What is marketing?

Answer 2

The management process responsible for identifying, anticipating and satisfying consumer requirements profitability

Question 3

What are the marketing objectives?

Answer 3

Sales volume and sales vaue, market size, market and sales growth, market shareand brand loyalty

Question 4

What are the different orietations?

Answer 4

Sales orientated business, product orientated business, production orientated business, marketing orientated business, asset based marketing

Question 5

The hierachy of marketing objectives

Answer 5

Corporate objectives, marketing objectives, marketing strategies and marketing tactics

Question 6

Name 4 internal infuences on marketing objectives?

Answer 6

Corporate objectives, finance, human resources, operational issues

Question 7

Name 5 external influences on marketing objectives?

Answer 7

Economic environment, competitior actions, market dynamics, technological change and social and political change

Question 8

What are the benefits of increased market share?

Answer 8

Increase in volume sales, economies of scales, increased revenue, increase in profits and profitability, advantage in terms of buying inputs, increased market power, greater brand awareness and higher return on investment

Question 9

What is sales volume?

Answer 9

Sales volume equals the amount of times a business sells during a given period.

Question 10

What is sales value?

Answer 10

Sales revenue equals the amount in pound a company makes during the period under review.

Question 11

What’s the market share equation?

Answer 11

Sales of one product or brand or business/ Total sales in market x 100

Question 12

What is brand loyalty?

Answer 12

When a customer repeatedly returns back to the same business

Question 13

3 sources of primary data

Answer 13

Experiments, observations and surveys

Question 14

3 sources of internalseceondary data

Answer 14

Cost data, customer reports and MIS (management information system) reports

Question 15

What is market mapping?

Answer 15

A model to plot the features of competitors against 2 variables to see where there is a gap in the market

Question 16

What is a confidence interval?

Answer 16

A Confidence Interval is a range of values we are fairly sure our true value lies in

Question 17

How does extrapolation work?

Answer 17

Establish the trend and then predict the future values based on the past trend

Question 18

What is the difference between a positive and negative correlation?

Answer 18

A positive relationship exists if as the independent variable increases in value, so does the dependent variable while a negative correlation the dependent variable decreases with the increase of the independent variable

Question 19

Give 4 ways a business segment its market

Answer 19

income, demographic, behavioural, geographic

Question 20

Define niche market

Answer 20

Niche markets are smaller parts of the overall markets where the product or service has been adapted to meet specific needs within the market

Question 21

Define mass market

Answer 21

Mass markets are the largest part of the market where there is a general/wide need between customers

Question 22

Describe the Boston Matrix

Answer 22

Market share and market growth (high and low). Star, Cow, Question mark, dog

Question 23

Describe the Product Life Cycle

Answer 23

Introduction, growth, maturity and decline. Sales, competition and profit builds through each stage

Question 24

Name the 3 types of consumer goods

Answer 24

convenience, shopping, speciality

Question 25

Name 3 pricing strategies

Answer 25

skimming, penetration and competitive

Question 26

Name the 7 Ps

Answer 26

Product, price, place, promotion, people, physcial environment and process

Question 27

Give 3 extension strategies to the product life cycle

Answer 27

repackaging the product, reducing the price, find new markets

Question 28

What is the difference between an industrial and consumer good?

Answer 28

Scale of purchase - Industrial is sold business to business, consumer is sold business to consumer

Question 29

What is multichannel distribution?

Answer 29

offering customers multiple ways of buying a product eg Apple store, Apple website, Apple products in Carphone warehouse

Question 30

Describe the 3 types in income elasticity

Answer 30

normal, luxury, inferior

Question 31

What effects the price elasticity of demand?

Answer 31

Substitutes, brand loyalty, Cost of switching eg mobile contract tie-ins

Question 32

Describe an inferior good

Answer 32

Income elasticity of demand is negative so a rise in income results in a fall in demand

Question 33

What range of numbers are used to describe elastic and inelastic Price elasticity?

Answer 33

-0.1>-1 are inelastic while -1, -1.1, -2 etc are elastic numbers between 0 and -1 are inelastic while numbers less than -1 are elastic

Question 34

Describe a normal good

Answer 34

Income elasticity of demand is between 0 and 1 so a rise in income results in a rise in demand that is relatively less than the % change in income

Question 35

Describe a luxury good

Answer 35

Income elasticity is greater than 1 so a rise in income has a relatively greater change in demand relative to the % change in income