5.3 - Market Research

Question 1

What are the 4 P’s that make up the marketing mix?

Answer 1

Product
Price
Place
Promotion

Question 2

What is the ‘Product’ in the marketing mix?

Answer 2

The products or services the business sells

Question 3

What is product differentiation?

Answer 3

Where a business trys to stand out within competitors

Question 4

What are two ways a business can follow product differentiation?

Answer 4

Building brand image - adverts, logos
Having a Unique Selling Point

Question 5

What is a business’ product portfolio?

Answer 5

The range of different products a business sells

Question 6

What is the Boston Matrix?

Answer 6

A diagram that allows a business to analyse its product portfolio

Question 7

What does the STAR mean in the Boston Matrix diargram?

Answer 7

The product has a high market share in a fast growth market

Question 8

What does the Cash Cows mean in the Boston Matrix diargram?

Answer 8

Theres products have HIGH market share in a low growth market

Question 9

What does QUESTION MARKS mean in the Boston Matrix diargram?

Answer 9

these peoducts have LOW market share in a fast growth market

Question 10

What does the DOGS mean in the Boston Matrix diargram?

Answer 10

These products have a low market share in a low growrh market

Question 11

What is the order of the product life cycle?

Answer 11

Development
Introduction
Growth
Maturity
(Extension)
Decline

Question 12

Explain the development stage of the product life cycle?

Answer 12

Product is being designed and tested
Costs are high as there is no sales

Question 13

Explain the development stage of the product life cycle?

Answer 13

The product is launched
Business spends money ro promote the product and starts to recieve sales

Question 14

Explain the Growth stage of the product life cycle

Answer 14

The product becomes more successful and sales increase rapidly

Question 15

Explain the Maturity stage of the product life cycle

Answer 15

Sales of product begin to mature and slow down

Question 16

Explain the decline stage of the product life cycle?

Answer 16

Product is no longer successful
Sales will fall
Can either be extended or discontinued

Question 17

Explain the EXTENSTION stage of the product life cycle?

Answer 17

Preventing a product from decline by variating it

Question 18

What are some extension strategies that a business can use to prevent a decline?

Answer 18

Reduce the price of product
Advertising
New packaging
New/ upgraded features

Question 19

What does price mean in the marketing mix?

Answer 19

The amount a business charges its customers for its product/services

Question 20

What are the five main pricing stategies that business’ can use

Answer 20

Price skimming
Price penetration
Competitive pricing
Loss leader
Cost-plus

Question 21

What is price skimming?

Answer 21

Starting products with a high price and then reducing over time

Question 22

What is price penetration?

Answer 22

Product starts with a low price and increases over time

Question 23

What is competitive pricing?

Answer 23

Setting a similar price to your competitors

Question 24

What does ‘loss leader’ mean when using pricing stategies?

Answer 24

Selling one product at a loss if ancustomer buys another prodyct that will still generate profit

Question 25

What does ‘cost-plus’ mean when using pricing stategies?

Answer 25

Adding a percentage onto the cost of making a product

Question 26

What are some factors that influences price?

Answer 26

Cost to make
Demand of product
Competition
Product life cycle

Question 27

What does place refer to in the marketing mix?

Answer 27

The channels of distribution used to get the products from the producer to the customer

Question 28

What is a whole saler?

Answer 28

Businesses that buy products and sell them to retailers (sainsbury’s)

Question 29

What are retailers?

Answer 29

Shops that sell goods and services fo the final customer

Question 30

Give three ways distribution channels can be set up.

Answer 30

Producer —» customer
Producer —» wholesaler —» customer
Producer —» wholesaler —> retailer —» customer

Question 31

What are other distribution channels to get products from a producer to a customer?

Answer 31

Telesales (sales over the phone)
E-commerce

Question 32

What does Promotion refer to in the Marketing Mix?

Answer 32

Methods to advertise products/services to customers and potential customers

Question 33

What are three ways a business can promote their product through advertising?

Answer 33

TV
Newspapers
Radio

Question 34

How can a business use sponsorship to promote and advertise its product/service?

Answer 34

Sponsoring sports events, sports teams or TV programs

Question 35

What are some ways a business uses promotion to promote its products to its customers?

Answer 35

Advertisements
Sponsorships
Social media

Question 36

What does the term competitive environment refer to for a business?

Answer 36

The pressure placed on a business by its competitors

Question 37

How can a business attract customers in a mass market?

Answer 37

Offering a product that fills a gap in the market
Better prices
Unqiue selling point
Having good relations with customers