3.5 - Marketing

Question 1

What is marketing?

Answer 1

Marketing is a specific process that focuses on meeting the needs and wants of the customer profitably

Question 2

What are the four ways that marketing can be split into?

Answer 2

Research
Segmentation
Development of a product
Marketing mix

Question 3

What must someone do to become successful?

Answer 3

• Understand the needs and wants of the customer
• Identify gaps in the market
• Do this before or better than competitors

Question 4

What is segmentation?

Answer 4

It groups customers into subsections of the market with similar characteristics

Question 5

Methods of segmentation

Answer 5

Age
Gender
Income
Location

Question 6

What is market research?

Answer 6

The gathering, analysing and processing data to find out the needs and wants of potential customers

Question 7

Benefits of market research

Answer 7

• Enables the business to understand the market and know who to target
• Reduces risk of failure
• Reduces waste of resources

Question 8

What are the two types of market research?

Answer 8

Primary

Secondary

Question 9

What is primary research?

Answer 9

This is when the business collects original, first hand information

Question 10

What is secondary research?

Answer 10

This is where the business collects information that already exists e.g through the internet

Question 11

What is the product life cycle?

Answer 11

A model showing the lifespan of a product’s sales from launch to being taken off the market

Question 12

What are the steps of a product life cycle?

Answer 12

1) R&D
2) Launch/introduction
3) Growth
4) Maturity/saturation
5) Decline
6) Maybe extension strategy

Question 13

What is the R&D stage?

Answer 13

Research and development is the stage before a product has actually been made

Question 14

What is the introduction/launch stage?

Answer 14

The introduction is the stage where a business introduces or launches the new product (or service) to the market

Question 15

What is the growth stage?

Answer 15

Successful products often undergo a period of growth as more and more customers discover and buy the product

Question 16

What is the maturity stage?

Answer 16

At this stage, the number of new customers buying the product has slowed down and the market for the product can be considered mature

Question 17

What is the saturation stage?

Answer 17

At this stage, the sales of the product have reached its peak and no longer increase but remain steady

Question 18

What is the decline stage?

Answer 18

Changes in fashion, consumer tastes, technological advances and new competition offering similar products can all mean that the demand for a product begins to fall

Question 19

What is an extension strategy?

Answer 19

Ways in which a business modifies a product to appeal to more customers and maintain sales in maturity

Question 20

What are four extension strategies?

Answer 20

• Changing the target market
• Advertising
• Update packaging or rebranding
• Adding more features

Question 21

What is a product portfolio?

Answer 21

A product portfolio is the range of products that a business sells

Question 22

In the Boston Matrix, what does a rising star represent?

Answer 22

Stars are products (or services) in a portfolio that have a high market share in a fast growing market

Question 23

In the Boston Matrix, what does the problem child represent?

Answer 23

Problem children are products (or services) with a low market share in a fast growing market

Question 24

In the Boston Matrix, what does the cash cow represent?

Answer 24

Cash Cows are products (or services) with a high market share in a slow growing market

Question 25

In the Boston Matrix, what does the dog represent?

Answer 25

Dogs are products (or services) with a low market share in a slow growing market

Question 26

What is price?

Answer 26

The amount charged to a customer for a good or service

Question 27

What is meant by channel of distribution?

Answer 27

How the ownership of a product passes from the producer to the final customer

Question 28

What is the traditional method of distribution?

Answer 28

Producer —> Wholesaler —> Retailer —> Customer

Question 29

What is the modern method of distribution?

Answer 29

Producer —> Retailer —> Customer

Question 30

What is the direct method of distribution?

Answer 30

Producer —> Customer

Question 31

What is promotion?

Answer 31

The different ways in which a business tries to communicate with its customers

Question 32

Promotional methods

Answer 32

• Social media
• Sales promotion
• Product placement
• Sponsorship
• Advertising
• Public Relations

Question 33

What is sales promotion?

Answer 33

Activity to increase sales of a product or service

Question 34

Methods of sales promotion

Answer 34

• Samples
• Discounts
• BOGOF
• Free gift
• Coupons

Question 35

What are the different types of advertising?

Answer 35

• Newspaper
• Magazines
• Television
• Internet
• Billboards

Question 36

What is public relations?

Answer 36

Public relations (PR) is all about a business’ reputation. PR involves maintaining a good public image

Question 37

What is sponsorships?

Answer 37

Sponsorship involves paying athletes, celebrities or other organisations for them to advertise for a business

Question 38

Why do firms use social media?

Answer 38

Firms can use social media for paid advertisements as well as for creating their own pages through which to share content. This is beneficial because it is an easy and relatively cheap way for businesses to promote their products

Question 39

What is product placement?

Answer 39

Products can be clearly featured (shown) in commercial TV programmes

Question 40

Reasons for promotion

Answer 40

• Persuade customers
• Create or increase sales
• Remind customer of product
• Raise awareness

Question 41

Importance of quality

Answer 41

• Uphold reputation
• Reinforce brand image
• Retain customer loyalty
• Premium pricing