Buisness Unit 2 key terms

Question 1

Advertising

Campaign

Answer 1

A series of advertisements, often using different advertising media

Question 2

Advertising Media

Answer 2

The methods by which a business can advertise a product. Includes

newspapers, TV and radio

Question 3

Census Data

Answer 3

Data collected by the Government every 10 years, questioning the

entire population on their income, occupation etc.

Question 4

Competitor

Pricing

Answer 4

When a price is set based on prices charged by competitor

businesses for a similar product

Question 5

Cost-Plus Pricing

Answer 5

A pricing method that adds a percentage of profit to the total costs

of making a product. This gives the selling price.

Question 6

Decline

Answer 6

When sales are falling as the product or service is seen by customers
as being old and they switch to newer products and services

Question 7

Design

Answer 7

An important element in a number of different products, especially

where style and technology work together

Question 8

Digital

Distribution

Answer 8

The distribution of goods and services digitally by downloading from
a website

Question 9

Focus Groups

Answer 9

Selected small groups of customers who give their opinion on

products

Question 10

Growth

Answer 10

When sales are growing strongly as the new product or service

becomes known

Question 11

Innovation

Answer 11

The improvement on an original idea, which will often involve using
new processes. It is closely linked to design, where new ideas can be
used in a product due to changes in design

Question 12

Internal Data

Answer 12

Data already within a business based on past performance

Question 13

Interview

Answer 13

A question sheet filled in by the person conducting the interview

Question 14

Introduction

Answer 14

When a product or service is first on sale

Question 15

Invention

Answer 15

The introduction of a totally new product or feature

Question 16

Marketing

Answer 16

Finding the needs of consumers and demonstrating how a business
fulfils those needs in a way that increases sales

Question 17

Market Data

Answer 17

Information that help marketing decisions. It includes data on such
things as market shares, changes in demand and the effect of
promotions

Question 18

Market Research

Answer 18

The collection of data on consumer habits to help decision-making in

marketing

Question 19

Market

Segmentation

Answer 19

Splitting the market for a product into different parts, or segments

Question 20

Market Share

Answer 20

The percentage of total sales of a product that a business has made.
If a business sells 20,000 products and the total market for that
product is 50,000, then the business has a market share of 40%

Question 21

Maturity

Answer 21

When sales are at their highest level

Question 22

P’s of Marketing

Mix

Answer 22

Price, Product, Promotion and Place

Question 23

Penetration

Pricing

Answer 23

When a price is set lower than the competitor businesses. Often
used by new businesses to break into a market. This should only be
seen as a short-term strategy

Question 24

Physical

Distribution

Answer 24

The distribution of goods using a physical presence such as a shop or
office

Question 25

Point of Sale | Promotions

Answer 25

Includes price reductions, loss leaders, competitions and free samples

Question 26

Primary Research

Answer 26

Data collected first-hand, often in the form of surveys. Sometimes referred to as field research

Question 27

Product Life Cycle

Answer 27

The life of a product, usually shown as a graph divided up into four stages: introduction; growth; maturity; and decline

Question 28

Promotional | Pricing

Answer 28

Where prices are reduced to give products a boost or to sell off old stock. Most commonly seen as sales in shops

Question 29

Qualitative Data

Answer 29

Data based on opinions of those being asked

Question 30

Quantitative Data

Answer 30

Data collected that is based on facts or numbers, usually easier to analyse than qualitative data

Question 31

Questionnaire

Answer 31

A question sheet filled in by the consumer

Question 32

Research and development

Answer 32

Used to help introduce both new and existing products. The research may be testing products in a laboratory or conducting market research by interviewing customers

Question 33

Secondary | Research

Answer 33

The collection of data using research or information provided by others, such as magazines, journals and the internet. Often called desk research

Question 34

Skimming

Answer 34

Where a new product is more advanced than that of competitors; a price is set high as some customers are willing to pay higher prices to own the newest technology.

Question 35

Target Market

Answer 35

The group of customers to whom a business aims to sell its products. The target market may be other businesses as well as consumers

Question 36

Trials

Answer 36

Used to test whether customers will buy a product