Marketing

Question 1

Market research

Answer 1

Purpose: to gather data on customers and potential customers. The collected data aids business decision making. This therefore reduces the risks involved in making these decisions

Question 2

What will market research determine:

Answer 2

1. Prices consumers are willing to pay
2. Most effective distribution methods
3. Most effective methods of communication

Question 3

Consumerism

Answer 3

Ability of consumers to influence the actions of business when they put pressure on the organisation to do what is considered ethicaln

Question 4

Consumer protection act

Answer 4

Purpose is to:

• protect consumers from unscrupulous marketers
• be aligned with UN and European guidelines on consumer protection
• protect and advance social and economic welfare of consumers In South Africa
• assist previously disadvantaged persons in fulfilling their rights to fair consumerism

Question 5

How can the purpose of the consumer protection act be achieved

Answer 5

• protecting economic interests of consumers
• consumer education
• protecting consumers from hazards to their own safety
• promote consumer participation in decision making
• developing effective ways to address and solve consumer issues

Question 6

Consumers have the right to:

Answer 6

• equality
• privacy
• choose
• fair value, good quality and safety

Question 7

Role of marketing manager definition

Answer 7

Involved in all decisions regarding marketing activities that are aimed at achieving the goals of the enterprise

Question 8

Convenience products

Answer 8

Involve items that don’t require much customer effort or forethought. Example: grocery items

Question 9

Select/shopping goods

Answer 9

Customers are willing to invest time and effort to buy. Example: a customer might compare fabric, prices and variety of shirts before purchasing

Question 10

Speciality goods

Answer 10

Require significant thought or effort. For example: a luxury car model might be available at just a few local dealerships

Question 11

Industrial goods

Answer 11

Used in the manufacturing of other goods. Example, raw material, spare parts, machines and equipment

Question 12

Services

Answer 12

1. Economic activities which are performed for a fee
2. Intangible, cannot see. Unlike products which are tangible
3. Types:
   - personal
   - professional
   - auxiliary

Question 13

Reasons for continuous product design

Answer 13

• to keep up to date with requirements of the target market
• to ensure netter products are available to replace less popular goods
• gives business competitive advantage

Question 14

6 steps of product design

Answer 14

1. Design and development of product ideas
2. Shifting and selecting product ideas
3. Designing and testing the product concept
4. Analyse the profitability of the product concept
5. Design and testing of the actual product
6. Test marketing

Question 15

Life cycle of product

Answer 15

1- development
2 - introduction (drone delivery)
3- growth (streaming tv shows online)
4- maturity (the Big Mac)
5- decline (renting movies)