definitions

Question 1

infrastructure

Answer 1

infrastructure is a general term for the basic physical system of a business, region, or nation.

e.g. highways, streets, and roads are common forms of infrastructure

Question 2

marketing

Answer 2

Stimulating, facilitating & fulfilling customer demand

Question 3

Four main functions of marketing?

Answer 3

1. Increased Sales
2. Competitive advantage
3. Product image (branding)
4. Customer satisfaction

Question 4

increased sales

Answer 4

this is important to increase the number of sales with a view to increase organisational profitability. organisations use marketing to increase their customer base (continue to attract new customers as well as bring old customers back)

Question 5

competitive advantage

Answer 5

There are many organizations offering similar products or services. Therefore marketing plays an important role in helping organizations or destinations to attract more customers than their rivals.

Question 6

product image

Answer 6

Customers like to use brands that are familiar
Or which they think offers the best value for money.
Marketing is essential in creating an association of a certain product in the customers mind

Question 7

customer satisfaction

Answer 7

meeting the needs and wants of customers so they return

Question 8

promotion

Answer 8

any form of activity carried out specifically to call attention to products ad services

Question 9

market research

Answer 9

collecting recording, analysing, and evaluating data about customers and the market itself

Question 10

2 types of market research

Answer 10

• primary

- secondary

Question 11

quantitative data

Answer 11

numerical data that can be shown in a graph or chart

Question 12

what are the 4 P’s

Answer 12

• product
• price
• place
• promotion

Question 13

SWOT

Answer 13

• strength
• weakness
• opportunity
• threats

Question 14

qualitative data

Answer 14

information collected about customers opinions and attitudes

Question 15

PEST

Answer 15

• political
• economic
• social
• technological

Question 16

5 stages of market research

Answer 16

set objectives => design the research => collect data => analyse data => report results

Question 17

what is PEST used for

Answer 17

when an organisation wants to find the external factors affecting a business

Question 18

stages in the product life cycle

Answer 18

1. introduction - product is launched into the market
2. growth - demand rising, competitors
3. maturity - product continues to make a profit, competition is strong, marketing is needed to extend the products appeal
4. decline - number of sales falls sharply, organisation needs to decide whether to discard or re-launch the product

Question 19

name the 3 most common market segments

Answer 19

1. geographic
2. demographic
3. phycographic or lifestyle

Question 20

what is the demographic segment

Answer 20

classified by :

• age
• gender
• ethnicity and levels of disposable income

Question 21

examples of primary research

Answer 21

1. questionnaires
2. telephone, online & postal surveys
3. face-to-face interviews
4. observation
5. focus groups

Question 22

what is market segmentation

Answer 22

customers are classified according to a number of pre-set characteristics and the market is divided into segments based on these

Question 23

product lifecycle

Answer 23

this marketing tool allows an organisation to evaluate the positioning of the products and services it offers in the market

Question 24

what is the phycographic segment

Answer 24

by socioeconomic factors such as level of education or profession as well as interests and attitudes

Question 25

what is the geographic segment

Answer 25

classified by locality, area, region.

Question 26

what is a product

Answer 26

anything that can be offered to a market that might satisfy a need. it includes physical objects and services

1. tangible
2. standardized
3. separable
4. storable

Question 27

what is a service

Answer 27

1. not tangible
2. not standard
3. inseparable
4. cannot be stored

Question 28

what is branding

Answer 28

this is a

way organizations clearly highlight what makes them different and more attractive than competitors

Question 29

market penetration

Answer 29

when a product enters the market and the price is low to gain customer attention and to establish customer loyalty

Question 30

market skimming

Answer 30

when a product is new and there is no competition, they will enter the market with a high price because people will pay the first to try something. when substitute products enter the market the price will then go down.

Question 31

discount pricing

Answer 31

if a product hasn’t been sold the desired amount or is about to expire the price will be lowered

Question 32

variable pricing

Answer 32

the price changes according to seasonality

Question 33

special offers

Answer 33

special prices to attract customers away from rival products

Question 34

competitive pricing

Answer 34

if there is a lot of similar products prices will be based on the ‘going rate’

Question 35

loss leader pricing

Answer 35

when one product is sold for little or no profit to gain customer attention and they will be attracted to buy linked products that will benefit the organisation more

Question 36

prestige pricing

Answer 36

price is set assuming people will link high pricing with high quality

Question 37

price bundling

Answer 37

when 2 more related items are put together and sold together