business management

Question 1

Market dimensions

Answer 1

The potential customers of a business that will potentially buy their products, this could include a niche or mass market.

Question 2

What are market dimensions and what do they do:

Answer 2

-They inform a business about the size of the market for a particular good or service.
-Implementation of marketing stratergies is determined by the size of the market.

Question 3

Market segmentation

Answer 3

Proccess of dividing a market into different groups of consumers that share similar characteristics.

e.g geographic, this is size of city, rural or urban, and climate of location.

Question 4

Pricing stratergies

Answer 4

Psychological pricing- this means when businesses put the price so that it appears lower than it actually is (making a product $19.99 instead of $20).

Question 5

Advantages of pricing stratergies

Answer 5

Business attracts more sales

Question 6

Disadvantages of pricing stratergies

Answer 6

-Customers can feel manipulated
-Overused strategy

Question 7

The product life cycle

Answer 7

This is a series of stages that a product passes through from when it’s introduced to the market until it becomes outdated/replaced.
-cycle consists of 4 stages

Question 8

Introduction

Answer 8

This is the first stage of the cycle, where a product is introduced to the market.
During this stage sales and market share are low

Question 9

Growth

Answer 9

This is the 2nd stage where the consumers have accepted the product resulting in sales growth and often starts to attract people’s attention to buy it/try it.

Question 10

Maturity

Answer 10

This is where businesses reach their peak level of product sales before they begin to plateau.
-This is also a stage where business faces high levels of competition, due to increased popularity amongst consumers.

Question 11

Decline

Answer 11

This is where the business will experience a steady decrease in sales as its product becomes outdated.
-This is often due to new products being introduced as they replace existing products.

Question 12

Place

Answer 12

An element of the marketing mix relating to how a business distributes its product to consumers.
-In order to sell products customers must be able to have adequate access

Question 13

Business objectives

Answer 13

The goals a business intends to achieve.
Through marketing, businesses are able to:
-increase sales
-increase market share
-improve levels of customer satisfaction
-increase their profit

Question 14

Factors within the internal environment affecting marketing

Answer 14

Employees- they play an important role in the marketing process, being the ones who directly interact with the customers.
-The ways in which employees present themselves directly impact how customers perceive the business (body language, dress attire, communication).
-Customer survival can enhance brand identity when positive and affect business perception when negative.