5. Marketing

Question 1

Consumer

Answer 1

Someone who uses goods and services produced by businesses

Question 2

Sales volume

Answer 2

Measures the number of items sold

Question 3

Sales value

Answer 3

Measures the revenue generated

Question 4

Segmentation

Answer 4

Occurs when a market is divided into different groups of needs and wants

Question 5

Benefits of segmentation

Answer 5

• develop its products to fit customer needs more closely
• target its customers more precisely
• set the price appropriately

Question 6

Ways of segmenting a market

Answer 6

By gender, by age, by location, by income, by the stage someone has reached in their life cycle

Question 7

Market research

Answer 7

The process of gathering, analysing and processing data relevant to marketing decisions

Question 8

Market segment

Answer 8

A group of buyers with similar needs within the overall market

Question 9

Types of data used in market research

Answer 9

Quantitative data and Qualitative data

Question 10

Quantitative data

Answer 10

This involves the use of numbers such as the size of the market, the growth of the market or the number of customers a business has

Question 11

Qualitative data

Answer 11

This involves views and opinions, but does not provide statistically reliable information. For example, by talking to a small group of customers you may get an insight into how they view the brand or how the product is viewed in relation to competitors

Question 12

Market size

Answer 12

Can be measured by the value or the volume of sales. The volume of sales is the number of units sold.

Question 13

Primary market research

Answer 13

Uses data gathered for the first time

Question 14

Second market research

Answer 14

Uses data that has baeen gathered already

Question 15

Marketing mix

Answer 15

Refers to all the activities influencing wether or not a customer buys a product. The elements of the mix can be analysed using the four Ps: price, place, product and promotion

Question 16

The choice of marketing mix will depend on factors such as

Answer 16

The product, competitors’ products, the target customers and business approach

Question 17

The elements of marketing mixing (4P’s)

Answer 17

Product, Promotion, Price, Place

Question 18

Factors of a Product

Answer 18

The service, the performance of the product, the price, product development, product differentation

Question 19

Product differentation

Answer 19

When a business wants to make their products stand out as different from the competition

Question 20

Stages of new product development

Answer 20

Generate an idea, check the idea, develop the product, trial the product, launch it

Question 21

Boston Matrix

Answer 21

A way of analysing a product’s share and growth in their market

Question 22

Dog

Answer 22

Product has a low market share in a low-growth market

Question 23

Four categories of products in the Boston Matrix

Answer 23

Dogs, cash cows, question markets, stars

Question 24

Cash cow

Answer 24

Product has a high market share in a low-growth market

Question 25

Question mark

Answer 25

Product has a low market share in a fast-growth market

Question 26

Star

Answer 26

Product has a high market share in a fast-growth market

Question 27

Product life cycle

Answer 27

Shows how the sales of a product may change over time

Question 28

Stages of a product

Answer 28

Development, introduction, growth, maturity, decline

Question 29

Extension strategies

Answer 29

Attemps to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle

Question 30

Price skimming

Answer 30

Setting a high price for a product when it first enters the market

Question 31

Penetration pricing

Answer 31

Launching a new product at a low price to achieve fast sales

Question 32

Competitive pricing

Answer 32

Matching the prices that competitors charge

Question 33

Loss leader pricing

Answer 33

A product sold at a loss in the hope that the customer will buy other items from the business where they make a profit

Question 34

Cost plus pricing

Answer 34

Where products are priced by covering the cost of it to the retailer and adding a percentage on top

Question 35

Factors influencing the price of a product

Answer 35

Costs, demand, competitors' pricing, stage in the product life cycle, strength of the brand, nature of the market and rest of the marketing mix, the business's objectives and approach to pricing

Question 36

Promotional activities

Answer 36

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

Question 37

Types of promotional activity

Answer 37

Advertising, newspaper, online, on the radio, on television and in cinemas, on vehicles, sales promotions, discoungs, buy one get one, coupons

Question 38

Sales promotion

Answer 38

Short-term incentives to encourage customers to buy

Question 39

Advertising

Answer 39

Involves paid for communications

Question 40

Promotional mix

Answer 40

The combination of promotional methods used by a business to communicate with its customers

Question 41

Factors that influence how the promotional mix is used

Answer 41

``` Costs and finance, target market, competitors' actions, nature of the market, nature of the product ```

Question 42

Reasons for promotion

Answer 42

To inform, to remind, to persuade

Question 43

Distribution channel

Answer 43

Describes how the ownership of a product passes from the producer to the final customer

Question 44

Wholesalers

Answer 44

break bulk; they buy in large quantities from a producer and sell to retailers

Question 45

Retailers

Answer 45

The shops that sell direct to the customer

Question 46

Direct marketing

Answer 46

When there is a direct link from the producer to the customer with no intermediaries

Question 47

Intermediary

Answer 47

A link in the distribution chain between the producer and the customer

Question 48

Physcological pricing

Answer 48

Seeting prices slightly lower than a whole number

Question 49

Price discrimination

Answer 49

When a company charges different prices to different customers for the same goods or services

Question 50

Premium pricing

Answer 50

A strategy where businesses price a product higher than the market average to strengthen quality and establish a luxury brand image