commerce task 2

Question 1

Product differentiation

Answer 1

when products that are the same or similar are made to appear different and/or better than their competitors

Question 2

Corporate social responsibility

Answer 2

when businesses consider the interests of stakeholders, society and the environment when making economic and business decisions

Question 3

Promotion

Answer 3

methods used by a business to inform, persuade and remind customers about its products

Question 4

Promotion mix

Answer 4

the various promotion strategies a business uses in its promotional campaign

Question 5

Advertising

Answer 5

a paid, non-personal message communicated through a mass medium

Question 6

Personal selling

Answer 6

involves the activities of a sales representative directed to a customer in an attempt to make a sale

Question 7

Relationship marketing

Answer 7

the development of long-term relationships with individual customers

Question 8

opinion leader

Answer 8

a person who influences others

Question 9

publicity

Answer 9

any free news story about a business

Question 10

Public relations (PR)

Answer 10

those things that a business does to make and keep good relationships with its customers

Question 11

Sales promotion

Answer 11

activities or items used directly to get people to buy something

Question 12

Market segmentation

Answer 12

the practice of dividing your target market into groups with charicteristics in common

Question 13

Target market

Answer 13

the group of customers to whom a business intends to sell its product

Question 14

Primary target market

Answer 14

the market segment at which most of the marketing resources are directed

Question 15

Secondary target market

Answer 15

a smaller and less important market segment

Question 16

ethics

Answer 16

standards that define what is acceptable and unacceptable behaviour; it is concerned with what is morally right or wrong

Question 17

Product placement

Answer 17

the inclusion of advertising in entertainment

Question 18

Social media advertising

Answer 18

a form of online advertising using social media platforms such as Facebook, YouTube and Twitter to deliver targeted commercial messages to potential customers

Question 19

Standardised approach

Answer 19

when a business uses the same marketing strategies in all markets

Question 20

Customised approach

Answer 20

when a business modifies their marketing strategies to take into account the differences among countries’ cultures, religion and tastes

Question 21

How do businesses differentiate products

Answer 21

Businesses differentiate products by emphasising unique features to make them more desirable than competitors’ offerings.

Question 22

example of product differentiation

Answer 22

supermarkets offer various types of bread like white, wholemeal, and gluten-free to cater to different preferences

Question 23

What are the social, ethical and environmental considerations involved when promoting products?

Answer 23

• Environmental factors
• Ethical considerations
• Social considerations

Question 24

environmental factors considered in selling and purchasing

Answer 24

focusing on eco-friendly practices like sustainable materials, waste reduction, and recycling promotion. Examples include The Body Shop’s reusable containers. Embracing sustainability attracts eco-conscious customers and boosts competitiveness while meeting regulations.

Question 25

ethical factors considered in selling and purchasing

Answer 25

Ethical product promotion meets consumer demands for fair labor, ethical sourcing, and environmental impact. Businesses attract these consumers by labeling products as GM-free, Fairtrade Certified, and cruelty-free, helping to retain ethically minded customers.

Question 26

social factors considered in selling and purchasing

Answer 26

Socially responsible product promotion includes fair employee treatment and community involvement. Examples are Google’s staff charity work and businesses sponsoring local sports teams and schools. These actions boost brand reputation and customer loyalty.

Question 27

What is the role of gender in product promotion?

Answer 27

Gender shapes product promotion, reinforcing stereotypes with men using tools and women in domestic roles. gender is typically considered a major factor when deciding on new campaigns and products

Question 28

What is the process used by businesses to target consumers, finding an appropriate target market?

Answer 28

Businesses segment the market by age, gender, income, and lifestyle to identify distinct groups. They then target a specific market to focus their marketing efforts and boost sales. By understanding this target market, businesses tailor their strategies to meet specific needs and increase profits.

Question 29

What Technology factors influence contemporary selling techniques

Answer 29

Artificial Intelligence (AI).
- Example: Netflix uses AI algorithms to recommend content based on user preferences and viewing history

Question 30

What social media factors influence contemporary selling techniques

Answer 30

Social Media Advertising.
- Example: Businesses use sponsored posts on Instagram to reach specific audience segments.
- Customer Engagement: Facilitates direct interaction with customers, resolving queries, providing support, and building brand loyalty.

Question 31

how is advertising used by businesses to promote a product and their effectiveness?

Answer 31

Advertising across multiple platforms helps create positive associations and reinforces brand loyalty among consumers.

Question 32

how is diverse product ranges used by businesses to promote a product and their effectiveness?

Answer 32

By offering diverse options, businesses can cater to the varying needs and preferences of their customers. For example, a clothing store that sells only one type of apparel might not appeal to everyone’s tastes or body types.

Question 33

how does launching new products used by businesses to promote a product and their effectiveness?

Answer 33

Launching new products with tailored marketing approaches can attract new customers and expand market reach, especially when the product meets emerging consumer trends or addresses specific needs.

Question 34

how is good packaging and branding used by businesses to promote a product and their effectiveness?

Answer 34

Iconic packaging and branding that evoke positive emotions or strong associations can enhance brand recognition and consumer loyalty over time.

Question 35

how is sponserships used by businesses to promote a product and their effectiveness?

Answer 35

Sponsorships of major events and organisations allow businesses to connect with target audiences and build positive brand perception through association with popular or relevant activities.

Question 36

how is personal selling used by businesses to promote a product and their effectiveness?

Answer 36

Personal selling through sales representatives can help build strong customer relationships, understand customer needs, and provide personalised recommendations, leading to increased sales and customer satisfaction.

Question 37

how is sponserships used by businesses to promote a product and their effectiveness?

Answer 37

Sponsorships of major events and organisations allow businesses to connect with target audiences and build positive brand perception through association with popular or relevant activities.