Lesson 3: Understanding the market

Question 1

It is how a business intends to present a product to the public, taking into account
the target audience, product benefits and marketing methods.

Answer 1

Marketing Strategy

Question 2

Marketing Strategy is how a business intends to __________, taking into account
the target audience, product benefits and marketing methods.

Answer 2

present a product to the public

Question 3

refers to activities a company undertake to promote the buying or selling of a
product or service.

Answer 3

Marketing

Question 4

A _____ is a long term plan on what to do to achieve a certain goal.

Answer 4

strategy

Question 5

specific group of people with shared characteristics you want to reach with your
marketing efforts

Answer 5

Target Market

Question 6

is the activity of dividing a broad consumer or
business market into sub-groups of consumers
(known as segments) based on some type of
shared characteristics

Answer 6

Market Segmentation

Question 7

Bases of market segmentation

Answer 7

geographic, demographic, behavioral, psychographic

Question 8

its about the Location, Country, City, Language and Population of the customers.

Answer 8

Geographic

Question 9

Its about the Age, Sex, Income, Education, Social Status, Family, and Occupation of the customers.

Answer 9

Demographic`

Question 10

it is the Readiness to purchase, Life cycle stage, User status, and Intent of customers

Answer 10

Behavioral

Question 11

its about the Lifestyle, Interest, Personality, Values, and Attitudes of customers

Answer 11

Psychographic

Question 12

is the set of controllable, tactical marketing tools
that a company uses to produce a desired response from its target market.

Answer 12

the marketing mix

Question 13

It consists of everything that a company
can do to influence demand for its
product..

Answer 13

Marketing Mix

Question 14

7 Ps of Marketing Mix

Answer 14

1. Product
2. Price
3. Promotion
4. Place
5. People
6. Packaging
7. Positioning

Question 15

This is defined as “anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations and ideas.”

Answer 15

Product

Question 16

bags, shoes, clothes, foods, cars, tables,
pencil, notebooks, etc. are example of

Answer 16

tangible products

Question 17

These are activities, benefits or
gratification offered for sale that is essentially ___ and does
not result in ownership of anything.

Answer 17

intangible products are services.

Question 18

By reviewing the product at different levels, an entrepreneur can have a
better understanding of the product’s competition, and gives a snapshot of
the reasons why a customer decides to buy the product or avail the services.

Answer 18

Product Levels

Question 19

Product levels

Answer 19

Level 1: Core Benefit

Level 2: Actual Product

Level 3: Augmented Product

Question 20

is the fundamental need that the customer satisfies when they
buy the product.

Answer 20

Level 1- Core Need

Question 21

is the product features
and its design. Products typically have lots
of features but very few actual benefits
(core benefits) to the customer.

Answer 21

Level 2 - Actual Product

Question 22

―to add to” or
―to make greater”. Therefore, the last
level in the product level model is
increasing and adding value \These are
referred to as ―add-ons.

Answer 22

Level 3 - Augmented Product

Question 23

It answers the question—how much? This is also
the amount of money that the customer must pay to
get the products or services that he wants. This is
also defined as the value that the entrepreneur
assigns to a product or service after computing its
costs.

Answer 23

Price

Question 24

is the method of pricing that an entrepreneur
use to determine how much to sell their products or services.

Answer 24

A pricing strategy

Question 25

Pricing Strategies

Answer 25

Market Penetration Pricing

Market Skimming Pricing

Competitive Pricing

Premium Pricing

Cost Based Pricing

Psychological Pricing

Bundling

Value based pricing

Product line pricing

Question 26

This is the setting up of a low price
to new products or services in
order to attract more customers and
increase in market share.

Answer 26

Market penetration pricing

Question 27

This is the opposite of market penetration
pricing because with _______
pricing strategy, the entrepreneur sets a
higher price for a new product to gain
maximum revenues for customers who are
willing to pay for a higher price.

Answer 27

Market Skimming Pricing

Question 28

This is a common practice among
entrepreneurs where they check and
refer to the product price of their
competitors.

Entrepreneurs in the same industry set
prices relatively low or relatively high
with competitors.

Answer 28

Competitive Pricing

Question 29

This is a method where the
entrepreneur sets a very high price
for their products and services to
reflect an impression of higher
quality and superiority.

Answer 29

Premium Pricing

Question 30

This is a pricing method wherein a mark-up
is added over costs or all expenses to
come-up with the agreed price of the
product or service.

Answer 30

Cost Based Pricing

Question 31

It is the practice of setting
prices of products that is
slightly lower than a whole
number.

Answer 31

Psychological Pricing

Question 32

This is when entrepreneurs combine
two or more of their products and
offers the ―bundle at a lesser price.

Answer 32

Bundling

Question 33

This is a pricing strategy wherein the
entrepreneur determines the
willingness to pay of a target
customer for a particular product or
service.

Answer 33

Value based pricing

Question 34

It refers to the practice of setting
prices for multiple products in
coordination with one another.

Answer 34

Product line pricing

Question 35

It refers to a location where the business is situated.
An entrepreneur would choose a prime location for his business where the customers could easily visit his store to buy their goods or services.

Answer 35

Place

Question 36

would also refer to the channels of distribution. In this
marketing mix, the entrepreneur seeks to answer this – how can we
deliver our products and services to our target customers?

Answer 36

Place

Question 37

It is organized and managed by a company that sells directly to
consumers.

Answer 37

Direct Distribution

Question 38

It involves intermediaries that perform a company’s distribution
functions

Answer 38

Indirect Distribution

Question 39

Types of distribution channel

Answer 39

Direct and Indirect

Question 40

to get the
attention of customers which will then lead to
their purchase of the product that is being
promoted.

This marketing mix may also create interest and
curiosity in the minds of buyers and can also
generate loyal customers.

Answer 40

Promotion

Question 41

Promotional Strategies

Answer 41

Advertising

Sales Promotion

Personal selling

Public relations

Direct marketing

Social Media marketing (SMM)

Question 42

It is any paid form of public
presentation or announcements of
products or services by an identified
sponsor through a medium.

Answer 42

Advertising

Question 43

The main purpose of advertisements are
the following:

Answer 43

Create awareness of your product or
service

Persuade the customers that your
company’s product or service is
suitable for their needs or wants

Improve the image of your company

Publicize new products or services.

Question 44

This is a short term incentive given to
customers to encourage the purchase of
a product or service

Answer 44

Sales Promotion

Question 45

This is one of the most sought after
strategies in promotion. Customers find
that ________ is that the priority
of the entrepreneur is on the
interactions, relationship and trust built
between sales and the customers or
buyers.

Answer 45

Personal Selling

Question 46

This also known as PR is the process
of creating good relations with the
general public and building a good
image. This also includes proper
management of unfavorable feedbacks
from customers.

Answer 46

Public Relations

Question 47

This is the strategy where the
entrepreneur makes ____
connections with carefully targeted
customers to get fast response and
make a lasting relationship thus
making them your loyal customers.

Answer 47

Direct Marketing

Question 48

This strategy uses social networking
websites such as Facebook, Instagram
and Twitter as a promotional tool.

Answer 48

Social Media Marketing (SMM)

Question 49

This is an additional element in the basic 4P’s of
marketing. _____include your employees and
how they handle and take care of your
customers’ needs.

Answer 49

People

Question 50

It how the product is presented to the customers.
It is the way your product or service looks from
the outside. _____ will set you apart from
your competitors. It is also part of your over-all
brand identity.

Answer 50

Packaging

Question 51

is also considered as
the ―”silent salesman” of your
products or services.

Answer 51

Packaging

Question 52

This is the process of communicating the
image of a brand into the minds of your
customers. This is also the marketing mix
where companies create their Unique Selling
Proposition or USP.

Answer 52

positioning

Question 53

is one of the most vital features of any enterprise.

Answer 53

Branding

Question 54

is an identifying symbol, mark, logo, name,
word, and/or sentence that businesses use to differentiate
their product from others.

Answer 54

Brand

Question 55

Characteristics of a brand name

Answer 55

Catchy, Visually appealing, and positive meaning, clear and concise, and unique

Question 56

use a word or phrase that is easy to recall. Avoid words that have
foreign sounding pronunciation.

Answer 56

Catchy

Question 57

your brand which includes your brand logo must be
carefully planned out. It must use a good combination of graphics and colors.

Answer 57

Visually Appealing

Question 58

your chosen brand name or brand logo should be carefully
checked for possible negative meanings.

Answer 58

Positive meaning

Question 59

the brand name should clearly identify your product and
its salient features.

Answer 59

Clear and concise

Question 60

As an entrepreneur, you should choose a name that has no similarity
with other brand names. It always a must to check the availability of your
chosen brand name before starting your business.

Answer 60

Unique