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 characteristics 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

Celebrity endorsements

Answer 19

involve using a well known person to use their product and become a brand ambassador to help sales

Question 20

Green marketing

Answer 20

the practice of promoting products or services that are environmentally friendly or have a positive impact on our planet

Question 21

Niche marketing

Answer 21

a highly targeted form of advertisement. these businesses promote their products and services to a small, specific audience.

Question 22

Standardised approach

Answer 22

when a business uses the same
marketing strategies in all markets

Question 23

Customised approach

Answer 23

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

Question 24

How do businesses differentiate products

Answer 24

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

Question 25

Example of product differentiation

Answer 25

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

Question 26

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

Answer 26

• Environmental factors
• Ethical factors
• Social factors

Question 27

Environmental factors considered in selling and purchasing:

Answer 27

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 28

Ethical factors considered in selling and purchasing:

Answer 28

ethical product promotion addresses consumer concerns about fair labor, ethical sourcing, and environmental impact. Businesses cater to these consumers by labeling products as GM-free, adopting Fairtrade Certification for fair prices and sustainable production, and offering cruelty-free cosmetics. Highlighting these practices helps attract and retain ethically minded consumers.

Question 29

Social factors considered in selling and purchasing:

Answer 29

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 30

What is the role of gender in product promotion?

Answer 30

Gender often reinforces stereotypes. For example, men are traditionally shown using tools or watching sports, while women are in domestic roles.

However, gender-inclusive advertising is on the rise, with brands like Adidas and Nike showcasing strength across genders and beauty ads becoming more neutral. This shift caters to modern consumers but may alienate traditional ones, reflecting evolving societal norms and preferences.

Question 31

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

Answer 31

Businesses target consumers by segmenting the market based on characteristics like age, gender, income, and lifestyle. This segmentation helps identify distinct groups within the market.

Once segments are defined, the business selects a target market to focus its marketing efforts and increase sales and profits. By understanding and responding to the desires of this target market, businesses tailor their strategies effectively to satisfy specific needs and improve sales.

Question 32

What technology factors influence contemporary selling techniques?

Answer 32

Artificial Intelligence (Al).
- Example: Netflix uses Al algorithms to recommend content based on user preferences and viewing history
- Webpages and E-commerce:
Businesses leverage user-friendly websites and e-commerce platforms to reach global markets, promote products, and provide seamless shopping experiences.
- Example: Retailers like Amazon sell products globally through their well-designed e-commerce platforms.

Question 33

What social media factors influence contemporary selling techniques?

Answer 33

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 34

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

Answer 34

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

Question 35

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

Answer 35

Diverse product ranges targeting specific demographics and preferences enable businesses to capture different market segments and cater to varying customer needs effectively.

Question 36

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

Answer 36

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 37

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

Answer 37

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

Question 38

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

Answer 38

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 39

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

Answer 39

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 40

How is sponsorships used by businesses to promote a product and their effectiveness?

Answer 40

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.