Chapter 2: Marketing

Question 1

Market Research

Answer 1

Research that enables a firm to find out about its market, its customers and its potential customers

Question 2

Primary Research

Answer 2

Gathering new information specifically for the purpose identified by the business

Question 3

Secondary Research

Answer 3

Research that uses information that has already been gathered for another purpose

Question 4

Questionnaire

Answer 4

A set of questions designed to discover information relating to a product or service. These may be left for consumers to complete themselves, carried out by using face-to-face interviews by researchers or from the basis of a telephone or postal survey

Question 5

Internet Research

Answer 5

Using information that has already been published on the internet to gather information about the market for a firm’s products or services

Question 6

Telephone Survey

Answer 6

A series of set questions delivered over the telephone to consumers as a method of primary research

Question 7

Supplier Feedback

Answer 7

Gathering information from companies that supply products or services on their forecasts for what is likely to happen in the market in the future

Question 8

Customer Feedback

Answer 8

Formal or informal responses from customers to the product or service offered by a business

Question 9

Focus Group

Answer 9

In-depth discussion with a small group of consumers (8-10), which probes their feelings towards a product or service.

Question 10

Marketing Mix

Answer 10

The 4 major variables for which decisions must be made when marketing a product

Question 11

Product

Answer 11

The service or physical good being sold by the company

Question 12

Price

Answer 12

The amount charged by a business for its product or service

Question 13

Promotion

Answer 13

All the ways a business communicates to consumers with the aim of selling products.

Question 14

Place

Answer 14

The methods used by a firm to sell its products or services to consumers

Question 15

Product range

Answer 15

The collective term given to all the products made or sold by a business

Question 16

Product differentiation

Answer 16

Attempting to make your products stand out from those of your rivals through advertising, design or different product features

Question 17

Demand

Answer 17

The quantity that consumers are willing and able to buy at the current price level

Question 18

Marketing budget

Answer 18

The amount to be spent on marketing and promotion over a certain period of time

Question 19

Advertising

Answer 19

Communication to consumers, using television and other media, to encourage them to buy a product

Question 20

Publicity

Answer 20

Gaining press coverage for your business

Question 21

Word-of-mouth recommendations

Answer 21

Getting customers to talk to their friends and family about your product or service

Question 22

Direct mail

Answer 22

Sending promotional material directly to consumers

Question 23

Personal selling

Answer 23

Employing a person to visit potential customers to persuade them to buy your goods and services

Question 24

Website

Answer 24

Many businesses now have their own website on the Internet to provide information about their business for consumers

Question 25

Banner

Answer 25

An Internet advert shown on another firm’s website in the form of horizontal bar across the page

Question 26

Pop-up

Answer 26

An Internet advert that ‘pops-up’ in a new window when visiting another company’s website

Question 27

Channel of distribution

Answer 27

The method used to transfer goods or services from the producer to the final consumer

Question 28

e-Commerce

Answer 28

Transactions between people and business carried out entirely via the Internet

Question 29

Wholesaler

Answer 29

Buys large quantities of a product from producers and break them down into more manageable batches for retailers or consumers

Question 30

Retailers

Answer 30

Offer consumers a convenient and comfortable environment in which to buy products