Chapter 3

Question 1

Market Growth

Answer 1

It refers to an increase in size of a market, in the terms of
value or volume of sales, over a period of time

Question 2

Market Share

Answer 2

It refers to an organisation’s share of the total value of sales
of all products within a specific market

Question 3

Market Leaders

Answer 3

These are firms that are dominant market players and the
ability to gain further economies of scale

Question 4

Social Marketing

Answer 4

It refers to any activity that seeks to influence social
behaviour to benefit the target audience and society as a whole

Question 5

Asset-led marketing

Answer 5

It is a business strategy to adopt use of core strengths of
business for marketing purpose

Question 6

Marketing Audit

Answer 6

It refers to a review of a firm’s current marketing mix, in
terms of its strengths, weaknesses, opportunities and threats

Question 7

Marketing Plan

Answer 7

It refers to the document outlining a firm’s marketing
objectives and strategies for a specified time period

Question 8

Marketing Strategy

Answer 8

It is any medium to long term plan for achieving the marketing
objectives of a business

Question 9

Marketing Mix

Answer 9

It refers to the main elements of a firm’s marketing strategy.
It consists of the 4 p’s – product, price, promotion and place

Question 10

Market Size

Answer 10

It refers to the magnitude of an industry, usually measured in
terms of the value of sales revenue from all the businesses in a particular make, per time period

Question 11

Ethical Marketing

Answer 11

It refers to the moral aspects of a firm’s marketing strategies.
It can be encouraged by the sue of moral codes of practice

Question 12

Market Research

Answer 12

It refers to the range of marketing activities designed to
discover the opinions, belief and feelings of potential and existing customers to identify and anticipate the needs and wants of customers.

Question 13

Primary Research

Answer 13

It involves data being collected by the researcher since the information does not currently exist

Question 14

Secondary Research

Answer 14

It involves using data and information that has already been
collected by another party

Question 15

Sampling

Answer 15

It is the practice of selecting a representative group of a
population for primary research purposes

Question 16

Segmentation

Answer 16

It refers to the process of categorizing customers into distinct
groups of people with similar characteristics and similar wants or needs for research and targeting purposes

Question 17

Targeting

Answer 17

It means that each distinctive market segment can have its own
marketing mix.

Question 18

Sales Forecasting

Answer 18

It is a quantitative technique that attempts to estimate the
level of sales a business expects to achieve, over a given time period.

Question 19

Product Line

Answer 19

It refers to a variety of the same product that business
produces for customers of a particular market

Question 20

Product Mix

Answer 20

It describes the variety of the different product lines that a
business produces.

Question 21

Product Range

Answer 21

It refers to all product lines of a firm’s product mix

Question 22

Product Life Cycle

Answer 22

It shows the different stages that a product is likely to go
through form its launch stage to growth to maturity to saturation to decline. It is measured over time in terms of the differing levels of sales

Question 23

Product differentiation

Answer 23

It is a marketing strategy that involves making a product stand
out from others, especially those offered by rival firms

Question 24

Product Portfolio

Answer 24

It means range of products owned by a business

Question 25

Branding

Answer 25

It is a form of differentiating a firm’s product from those of
its competitors.

Question 26

Brand

Answer 26

It refers to a name, sign, symbol, color etc that is identifiable
with a product of a particular business

Question 27

Brand Preference

Answer 27

It means that customers favour a particular brand over rival brands

Question 28

Brand Loyalty

Answer 28

It is when customers buy the same brand of product time and
time again

Question 29

Market Leader

Answer 29

The firm with the largest market share

Question 30

Brand Developement

Answer 30

It is the long term process of marketing strategy done to
strengthening and building the name and image of a brand in order to boost its sales

Question 31

Price Elasticity of Demand

Answer 31

It measures the degree of responsiveness of changes in demand
due to a small change in the product’s own price

Question 32

Income elasticity of demand

Answer 32

It measures the degree of responsiveness of changes in demand to a small change in consumer income levels

Question 33

Cross price-elasticity of demand

Answer 33

It measures the degree of responsiveness of changes in demand
for one product due to a small change in the price of another product be that a substitute or a complement

Question 34

Advertising elasticity of demand

Answer 34

It measures the degree of responsiveness of changes in demand
due to a change in a firm’s advertising expenditure

Question 35

Above the line promotion

Answer 35

It refers to the use of mass media sources such as Tv,
magazines, radio to promote or to establish a favourable long term image of a business , its brand or its products

Question 36

Below the line promotion

Answer 36

It refers to the use of non-mass media such as free samples,
discount vouchers etc as promotional activities

Question 37

Public Relations

Answer 37

It refers to business activities aimed at establishing and
protecting the desired image of an organisation

Question 38

Personal Selling

Answer 38

It is a form of promotional technique that relies on keen and
knowledgeable sales staff directly helping and persuading customers to make a purchase

Question 39

Promotional Mix

Answer 39

It refers to the combination of individual promotional methods
used by a business such as advertising, sales promotion and personal selling