5.1 Marketing

Question 1

What are the 4Ps in the marketing mix?

Answer 1

1. Product
2. Price
3. Promotion
4. Place

Question 2

Give 4 reasons why it is important to identify customer needs?

Answer 2

• For more sales
• To select the correct marketing mix
• To avoid costly mistakes
• To operate competitively in the market

Question 3

What is market segmentation?

Answer 3

Market segmentation is when people within a market are divided into different groups

Question 4

How are markets segmented?

Answer 4

Markets are segmented based on characteristics like gender, age, location and income

Question 5

Why do businesses use market segmentation?

Answer 5

To identify their target market and tailor the marketing mix (product, place, price and promotion) towards them and make it more suitable for them

Question 6

What is the drawback of market segmentation?

Answer 6

It generalises a population based on their characteristics

Question 7

What information is collected during market research?

Answer 7

During market research, information on the following is collected (as it may help a business with decision making):
* Demand of a product or service
* Competition within the market
* Target Market

Question 8

Give 3 reasons why businesses collect information on demand during market research?

Answer 8

• To get a better insight into their customers
• To see how many sales a product could generate
• To maximise profit OR avoid costly mistakes by making too much

Question 9

Why is it important for a business to collect information on the competiton during market research?

Answer 9

To help understand and prepare the business with the major threats in a market, such as another businesses’ product or pricing

Question 10

Give 3 reasons why it is important for a business to collect information about the target market during market research?

Answer 10

• To help understand their customer’s wants and needs
• To create targeted marketing
• To identify a gap in the market

Question 11

What is qualitative research?

Answer 11

Qualitative research is information on opinions and views

Question 12

What is quantitative research?

Answer 12

Quantitative research is information that can be measured or quanitified

i.e. “How many pizzas do you eat per week?”

Question 13

What is primary research?

Answer 13

Primary research is first hand market research that is done directly by you or the business

Question 14

Give 4 examples of primary research methods

Answer 14

• Questionnaires
• Surveys
• Interviews
• Focus groups

Question 15

What are the two benefit of primary research?

Answer 15

• It is up to date
• It is tailored to the needs of the business

Question 16

What is the advantage of using questionnaires & surveys

Answer 16

They are quick and cheap

Question 17

What is the disadvantage of using questionnaires

Answer 17

The questions are very restrictive

Question 18

What is the advantage of interviews and focus groups?

Answer 18

You gain detailed responses and opinions

Question 19

What is the disadvantage of interviews and focus groups?

Answer 19

• Time Consuming
• Expensive

Question 20

What is the advantage of focus groups over interviews?

Answer 20

It is faster as you are collectively interviewing several people rather than individually

Question 21

What is the disadvantage of focus groups over interviews?

Answer 21

Quiter people do not get their opinions heard

Question 22

What is secondary research?

Answer 22

Secondary research is research that has been performed by other organisations or people

Question 23

Give 3 examples of secondary research

Answer 23

• Internet research
• Printed press
• Government Reports

Question 24

List three benefits of using secondary research

Answer 24

• It is cheaper
• It is instantly accessible and faster
• It is more expansive as it gives access to a wider range of data

Question 25

List 2 drawbacks of using secondary research

Answer 25

• Not specifically tailored to your product or needs
• May be out of date