A1 Principles And Purposes Of Marketing

Question 1

What is marketing

Answer 1

The identification,satisfying and revisiting of customer needs

Question 2

Marketing covers a number of activities including:

Answer 2

Researching
Making decisions
Keeping up to date

Question 3

Researching the market is to what…

Answer 3

Identify customer needs

Question 4

Making decisions is about what?

Answer 4

The product, price, place and promotion in order to satisfy customer needs

Question 5

Why is keeping up to date with changes in the market important?

Answer 5

It allows you to keep customers coming back and attract new customers

Question 6

The principles and purposes of marketing include what?

Answer 6

Stimulating demand

Satisfying demand

Question 7

What does Stimulating demand include?

Answer 7

Informing existing and potential customers about the products

Generating interest

Developing brand recognition

Question 8

Satisfying demands included what?

Answer 8

Meeting customer needs

Developing new products

Changes to the marketing mix

Question 9

What is a business aim

Answer 9

The overall long-term target or goal of the business

Question 10

Marketing objectives are likely to what

Answer 10

be informed (Instructed) by research and potentially constrained by budgets

Question 11

what two things are used to select the marketing strategy and develop a marketing campaign?

Answer 11

marketing aims and objectives

Question 12

What are examples of marketing objectives?

Answer 12

Understanding customer wants and needs

Developing new products

Improving profitability

Increasing market share

Diversification

Increased brand awareness and loyalty

Question 13

Examples of understanding customers wants and needs

Answer 13

with a view to satisfy them

Anticipating changing tastes and preferences

Gaining a competitive advantage

Question 14

Examples of developing new products

Answer 14

Innovative products

Extensions to existing products

Responding to technological advancements

Question 15

Examples of improving profitability

Answer 15

Increasing revenue whilst maintaining costs (e.g. more repeat purchases)

Charge higher prices as a result of brand loyalty

Question 16

1-What is market share
2-How to calculate market share
3-Example of increasing market share

Answer 16

1-Market share is the proportion of total market sales that a firm has

2-Business A sales/market sales x 100

3-Wider brand recognition

Question 17

Examples of diversification

Answer 17

Bringing out new products for new markets

Spreading risk

Building brand strength

Question 18

What is brand loyalty

Answer 18

when customers keep returning to buy a recognised brand

Question 19

What is branding

Answer 19

a promotional method that involves the creation of an identity for a business that distinguishes its products from competitors

Question 20

Markets can be categorised by…

Answer 20

Consumer

(products and services bought by individuals for their own or family use)

Industrial Markets

Question 21

Types of consumers

Answer 21

FMCG’s (Fast-moving consumer goods)

Consumer durables

Soft goods

Services

Industrial Markets

Question 22

What are FMCG’s

Examples

Answer 22

These are high volume, low unit value, fast repurchase

ready meals, baked beans and newspapers

Question 23

What do Consumer durables have

examples

Answer 23

These have low volume but high unit value. Consumer durables are often further divided into

White goods
Brown goods

Question 24

Examples of White goods

Answer 24

Fridge-freezers, cookers, dishwashers, microwaves

Question 25

Examples of brown goods

Answer 25

DVD players, games consoles, personal computers

Question 26

What are soft goods

examples

Answer 26

Soft goods are like consumer durables, except that they wear out more quickly and therefore have a shorter replacement cycle

Clothes, shoes

Question 27

Examples of services

Answer 27

Hairdressing, dentists and childcare

Question 28

What do Industrial markets involve

Answer 28

Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers

Question 29

Industrial markets include selling…

Answer 29

Selling finished goods

Selling raw materials or components

Selling services to businesses

Question 30

Examples of selling finished goods

Answer 30

office furniture

computer systems

Question 31

Examples of selling raw materials or components

Answer 31

steel, coal, gas , timber

Question 32

Examples of selling services to businesses

Answer 32

Waste disposal, security. accounting and legal services

Question 33

Industrial markets often require what?

Answer 33

a slightly different marketing strategy and mix

Question 34

Examples of the types of markets

Answer 34

Mass markets

Niche markets

Question 35

Examples of mass markets

Answer 35

A product is targeted at a wide range of people

The market is not segmented i.e. the characteristics of types of customers are not an important factor

Products appeal to a wide range of customers

Products are widely available through a range of markets

Mass media is used to advertise the products

Question 36

Examples of Niche markets

Answer 36

Identifying small, currently unsatisfied, gaps in the market

The target market is well defined with distinct characteristics

Promotional activities will be target at just a small subsection of the whole market

Can often charge higher prices

Question 37

Examples of both mass markets and niche markets

Answer 37

Market size

Market share

Question 38

What is market size?

Answer 38

This is the total value or volume of sales in the market. It can be measured in money terms e.g. £20 million or by the amount sold e.g. 1 million cars

Question 39

What is Market share?

Answer 39

This is the proportion of total market sales that a firm has