Key terms for Marketing Unit Test 2

Question 1

What do businesses use profits for

Answer 1

Profits can be reinvested in new technology, business growth, and paying off debt N.B.P

Question 2

What is the reward of a free market system?

Answer 2

-Encourages the creation of new businesses
-Provides a wide selection of goods and services
-lowers prices for the customer

Question 3

Direct competition

Answer 3

Products in the same product category that are very similar EX: Coke and Pepsi

Question 4

Indirect competition

Answer 4

Products that are not in the same product category which are not directly related to each other EX: Entertainment -Concert and soccer game

Question 5

Non-sustainable competitive advantages?

Answer 5

Non-sustainable:
P.P.Q.B.P.D
-Promotion
-Placement
-Quality
-Benefits of use
-Price
-Design features

Question 6

What is top-of-mind awareness?

Answer 6

To describe a brand or product that is the first one that comes to mind when a consumer thinks about a particular category or need.

Question 7

What are the different service competition factors?

Answer 7

-Convenience
-Degree of Service
-Selection
-Reputation
-Price
C.D.S.R.P

Question 8

Convenience meaning

Answer 8

making some activity easier or more comfortable, sell how convenient it is
Ex. cleaning services, and catering services

Question 9

Degree of Service Meaning

Answer 9

the amount of service that the company provides

Question 10

Selection Meaning

Answer 10

Offering a greater selection of services is a way of creating a competitive advantage.

Ex. A video store that rents video games, game consoles, VCRs, DVDs, DVD players, and a large selection of movie titles.

Question 11

Reputation meaning

Answer 11

It is important for a company to maintain a good reputation because it does not have a tangible product to show the customer. Word-of-mouth can either make or break a service business.

Question 12

Price meaning

Answer 12

Price is a factor in both good and service competition. If two services are similar the business with the lower price has the competitive edge, however if prices are too low customers may question the business’s reputation and credibility.

Question 13

What is market share?

Answer 13

Increasing the size of the overall market takes sales away from its competitors. the size the company has to the market in relation to the competitors

Question 14

What is market research?

Answer 14

systematic collection, analysis, and interpretation of information used to develop a marketing strategy or to solve a marketing problem. Learning about trends, demogrpahic and market share

Question 15

What is hard data

Answer 15

Information is based on supportable facts. Attached are quantitative data

Question 16

What is the difference between primary and secondary research?

Answer 16

-Primary data is collecting the research yourself for your business
-Secondary is where you find others’ research to support your business
Ex of 2nd data: Periodicals, books, indexes and databases, internet, consultant

Question 17

What is the difference between qualitative and quantitative research

Answer 17

Qualitative Data: Used to measure people’s reactions, responses, or feelings towards a given subject or problem. Soft data-How do you feel

Quantitative Data: Primarily involves collecting data by surveying a representative sample of a target market population. Hard Data: You can canculate it through numbers

Question 18

What is data mining

Answer 18

research process marketers use collected data to help them see whuch products are doing good and patterns of the products

Question 19

What is the difference between an open and close-ended question

Answer 19

Close-ended: YES OR NO question
Open-ended question: Allows a person to answer in detail

Question 20

What is perfect competition?

Answer 20

Products are identical from one seller to another

Question 21

What is a value-added service?

Answer 21

product with additional benefits that make the product or service more attractive such as free shipping, extended warranties

Question 22

What is the difference between a wide and deep selection?

Answer 22

Wide selection: A store that sells various products, such as clothing, electronics, and home goods.
Deep selection: A store that specializes in a particular product category, such as shoes, and offers a wide range of styles, sizes, and brands within that category.

Question 23

What is the responsibility of the research and development department?

Answer 23

Creating new products and doing tests to see if viable to use as for the marketing strategy

Question 24

Internal Information Sources:

Answer 24

Where companies build databases that provide both personal data and purchasing records for every customer they serve. The information can be used to target previous buyers with sales promotions and advertising Ex: data collecting, using barcodes to see what is popular, reward cards,

Question 25

Sustainable competitive advantages

Answer 25

Sustainable: D.L.S.C
-Developing a unique selling proposition
-Lowering production costs
-Servicing a niche market
-Creating customer loyalty