Definitions

Question 1

Marketing

Answer 1

the process of developing a product and implementing a series of strategies aimed at correctly promoting, pricing and distributing the product to a core group of consumers

Question 2

Standard of Living

Answer 2

a measure of an individual’s quality of life, partly based on what goods and services the individual can afford to buy

Question 3

Strategic Role of Marketing

Answer 3

the ability of the business to develop goods and services that develop a long-term relationship with a specific customer based and, in so doing, generate sales and revenue for the organisation

Question 4

Brand Awareness

Answer 4

the extent to which consumers are aware of the existence of a particular product, its features, price and possible places of purchase

Question 5

Market Share

Answer 5

the percentage of total sales a business has compared with its competitors within a particular market

Question 6

Marketing Mix

Answer 6

the process of developing a product that meets the needs of consumers and implementing a series of promotional, pricing and distribution strategies that will encourage consumers to purchase the product

Question 7

Selling Approach

Answer 7

involves a business placing emphasis on strategies aimed at convincing consumers of the need to buy a product

Question 8

Intermediate Markets

Answer 8

markets in which retail businesses purchase products that have been produced by other organisations, also known as wholesalers

Question 9

Mass Market

Answer 9

the market where products are aimed at all consumers

Question 10

Psychological Factors

Answer 10

the personal characteristics of individuals that influence their behaviour

Question 11

Price Discrimination

Answer 11

a business giving preference to some retailers by providing them with stock at lower prices than are offered to the retailer’s competition

Question 12

Implied Wartranty

Answer 12

Regardless of whether a product is carrying a warranty, a business must, by law, either refund a client’s money or offer an exchange of the good should the good be recognised to have been faulty at the time of leaving the store

Question 13

Product Analysis

Answer 13

examines the current production position of the goods/services that a business produces in the marketplace

Question 14

Product Life Cycle

Answer 14

the different phases that a business’s product will often go through over the course of its existence

Question 15

Primary Data

Answer 15

information that is collected for the specific purpose for which it will be used

Question 16

Secondary Data

Answer 16

information that already exists, having already been collected for another purpose

Question 17

Sales Analysis

Answer 17

an examination of the sales of a particular product among different consumer groups, by sales representatives and during various times of the year

Question 18

Market Share Analysis

Answer 18

an examination of the sales performance of a business and its comparison with that of its direct competitors

Question 19

Marketing Profitability Analysis

Answer 19

the process of evaluating the financial and non-financial benefits that have been achieved by a specific marketing plan against the costs of implementing the plan

Question 20

Market Segmentation

Answer 20

the process of breaking down a total market into small markets based on the similar characteristics of a customer group

Question 21

Geographic Segmentation

Answer 21

the process of dividing a market or customer group into smaller markets based on different geographic locations, such as nations, states, or local government areas

Question 22

Demographic Segmentation

Answer 22

the process of dividing a market into smaller markets based on customers’ age gender, income, family size or level of education

Question 23

Psychological Segmentation

Answer 23

the process of dividing a market into smaller markets based on consumers’ lifestyles, personalities, values and interests

Question 24

Behavioural Segmentation

Answer 24

the process of dividing a market based on people’s knowledge of, attitudes towards and use of a product

Question 25

Price

Answer 25

the cost to the consumer of buying a good/service

Question 26

Posistioning

Answer 26

the image that a product has in the mind of the consumer - how it is compared against other products

Question 27

Branding

Answer 27

the reputation that a business or product has developed over time

Question 28

Penetration Pricing

Answer 28

a pricing strategy whereby pries are set at the lowest possible price to gain an immediate customer base

Question 29

Loss Leader

Answer 29

a pricing strategy that involves providing a limited number of goods at a price that generates minimal profit or even a loss to encourage consumers to purchase goods from the business

Question 30

Product-Deletion Pricing

Answer 30

a pricing strategy that is used to clear stock hat a business believes is no longer selling or attracting interest from customers

Question 31

Market Skimming

Answer 31

a pricing strategy that is used when a business wants to recover the high costs involved in establishing a product and releasing it onto the marketplace by setting a high price

Question 32

Cost-Plus Pricing

Answer 32

a pricing strategy whereby the business considers the total cost to the business of manufacturing or providing a good or service to the consumer and then adds an amount to allow for a profit margin

Question 33

Relationship Marketing

Answer 33

the process of building and maintaining long-term relationships with customers

Question 34

Place

Answer 34

the methods of distribution and availability of a good from different outlets and locations

Question 35

Distribution Channels

Answer 35

the channels by which a product is moved from the place of manufacture to the consumer

Question 36

Selective Distribution

Answer 36

involves the use of only a limited number of stores to sell or distribute a product

Question 37

Exclusive Distribution

Answer 37

a form of distribution where there is a restriction on the number of products and/or the availability of the product

Question 38

Intensive Distribution

Answer 38

occurs when a product is readily available to a wide selection of businesses or locations

Question 39

Competitive Posistioning

Answer 39

involves the formal process of a business determining how to differentiate itself from its competitors, and, in so doing, develop strategies for the business to create value from these differences