Business 4

Question 1

what are the 7 steps of marketing (Don’t worry too much about this!)

Answer 1

define problem-design research-design data collection forms-specify the sample-collect the data-analyze the data-right research reports.

Question 2

what are the three types of sampling in marketing? Describe them

Answer 2

Random sampling, choosing people completely at random. Quota sampling , choosing people within a particular market segment eg. 20% males. stratified random sampling choosing people at random and it particular market segment from a list. less biased than quota sampling where a similar group may be picked

Question 3

Define Marketing

Answer 3

marketing is a process of finding out a customers wants and needs, and providing them. It can follow three step process, identifying needs, anticipating needs, meeting customer needs.

Question 4

What is the difference between social and private benefits and costs?

Answer 4

Private = group or individual benefits from a business activity
Social = benefits to community - all private benefits as a whole

Question 5

What are the four elements of the marketing mix?

Answer 5

Price
Product
Place
Promotion

Question 6

Three ways to encourage product trial

Answer 6

Advertising, Public Relations, Viral Marketing, Free Samples, Lower Price

Question 7

3 Benifits of product trial?

Answer 7

Save money + prevent damage to brand name so less risk, good way to introduce new products to consumers word of mouth advertising, gives customer feedback for improvements

Question 8

Two methods to encourage repeat purchase?

Answer 8

Product innovations, reminder adverts

Question 9

What is meant by repeat purchases

Answer 9

To get a customer to buy a product again after a trial, this could be encouraged by reminder adverts

Question 10

What are the four/five stages of product life cycle

Answer 10

(Research and development), introduction, growth, maturity, decline.

Question 11

Describe the introduction and growth in a product life cycle

Answer 11

introduction, the product is released on to the market, net cash flow negative. Growth, if the launch successful sales increase sharply and the product may make a profit for the first time, net cash flow positive but small.

Question 12

describe the maturity in a product lifecycle

Answer 12

sales growth slows down, but repeat customers continue to buy and customers become loyal the market becomes saturated as rivals bring out competing products. Net cash flow positive, at peak

Question 13

describe the decline in a product lifecycle.

Answer 13

The product is outdated and there is a big fall in sales leading to withdrawal. At this point a business may try extension strategies as they start to experience cash flow issues.

Question 14

describe extension strategies

Answer 14

when a product stops to getting to decline advertising or other strategies are used so that the product appeals to a different target market or market segment, giving it a boost in sales

Question 15

describe the product portfolio/mix

Answer 15

This is a range of products that business sells. Analyzing a product portfolio (using a Boston matrix) helps a business make decisions about which products to keep, invest in or withdraw.

Question 16

what are the four areas of a boston matrix

Answer 16

Star, Cash cow, question, dog.

Question 17

describe a star in the Boston matrix

Answer 17

(High growth, High Sales) very successful product, but growth has to be funded to keep up with demand and cash flow therefore may be a problem

Question 18

describe a cash cow in the Boston matrix.

Answer 18

(Low growth, high share) Little growth, but an established and profitable product that can support others

Question 19

Describe a question in a boston matrix

Answer 19

(High growth, low share) most products starts out as this, it presents a problem as to whether it is invested in or withdrawn.

Question 20

Describe a dog in the Boston matrix

Answer 20

(low growth, low share) few prospects but should be considered to keep the business continue to sell if it is profitable and funds products.

Question 21

Describe the Boston Matrix

Answer 21

A product portfolio analysis tool used to plan the development of products. It can be closely linked to the product lifecycle, and be used to choose which products to invest in and which to withdraw.

Question 22

name three extension stratagies.

Answer 22

change packaging, find a new use, new ingredients, new flavors, new advertising, target New market.

Question 23

What is corporation tax?

Answer 23

Tax on a companies profits

Question 24

What is branding

Answer 24

An image for consumers created around products or a business so that it may appeal to a target market. This could be utilised through a logo or slogan and advertising of that.

Question 25

1 DisAdv 2 Adv Branding

Answer 25

Differentiates, creates awareness, adds value

Image easily destroyed through bad marketing etc