Ch 16- Marketing Your Business

Question 1

What is marketing?

Answer 1

identifying consumer needs and producing the products and services that will satisfy those needs.

Question 2

What is target market?

Answer 2

The customers that a product or service will be aimed at

Question 3

What is marketing mix?

Answer 3

the combination of actions a company uses when selling a product or service

Question 4

What is the USP?

Answer 4

A unique selling point is a feature of a product or service that makes it different from, and better than, other similar products

Question 5

What are the 4 P’s of marketing?

Answer 5

Product
Price
Promotion
Place

Question 6

What is product branding?

Answer 6

creating an identity for a product that clearly distinguishes it from competitors. It consists of a brand name and logo

Question 7

What is a brand logo?

Answer 7

a distinctive visual image that will help the product stand out from competitors

Question 8

What factors influence price?

Answer 8

⇒Cost of production and the need to make a profit
⇒Level of demand
⇒Competitors’ prices
⇒Stage in the product life cycle
⇒Government taxes e.g. VAT

Question 9

What is mark-up (cost-plus pricing)?

Answer 9

adding a profit percentage to the direct costs of production of the item, to arrive at the selling price.

Question 10

What is psychological pricing?

Answer 10

setting a price based on the expectations of the customers in the target market

Question 11

What are channels of distribution?

Answer 11

the various routes that goods may follow to get from the producer to the consumer

Question 12

What is channel 1? Give examples

Answer 12

Producer → Wholesaler → Retailer ⇒ Consumer
(known as ‘breaking bulk’) e.g. Duracell betteries

Question 13

What are wholesalers?

Answer 13

businesses that buy goods in very large quantities from the producers and sell them in smaller quantities to retailers

Question 14

What is channel 2? Give examples

Answer 14

Producer → Retailer ⇒ Consumer
e.g. Newspapers

Question 15

What is channel 3? Give examples

Answer 15

Producer ⇒ Consumer
e.g. farmers market

Question 16

What is promotion?

Answer 16

the communicating with customers in order to attract their attention to a product or service
e.g. advertising, in-store merchandising

Question 17

What is advertising?

Answer 17

communicating with customers to inform, persuade or remind them about a product or service

Question 18

What is advertising media?
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Answer 18

the communication channels available to a business for its advertising

Question 19

What is in-store merchandising?
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Answer 19

using promotional displays in shops to attract attention to a product and increase sales

Question 20

What are sales promotion?
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Answer 20

specific incentives offered to customers to attract their attention, increase sales and encourage customer loyalty

Question 21

What is direct selling?
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Answer 21

contacting customers in person to generate sales

Question 22

Give 3 examples of direct selling
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Answer 22

⇒ Face-to-face
⇒ Over the phone using telemarketing
⇒ using email or post

Question 23

What is telemarketing?
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Answer 23

communicating with customers by telephone to generate sales and deal with customer queries and complaints

Question 24

What are public relations? (PR)
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Answer 24

Communicating with the media using good news stories to create favourable publicity for a firm or its products

Question 25

What is sponsorship?
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Answer 25

where a company pays money to have their name associated with a major event or a charitable cause

Question 26

What does choosing a promotional method depend on?
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Answer 26

⇒ The target market

⇒ The cost of buying advertising (the advertising budget available)