Marketing

Question 1

PPPP - marketing mix - What is PROMOTION?

Answer 1

PROMOTION - is making customers AWARE that a PRODUCT exists - eg advertising on TV/Radio

Question 2

PPPP Marketing mix - PRODUCT - What does PRODUCT part of the Marketing MIX involve?

Answer 2

PRODUCT means - IDENTIFYING the customers NEEDS & WANTS - COMING UP WITH A PRODUCT that will FULFILL these

Question 3

Primary Market Research - what is it?

Answer 3

Primary Market Research - is NEW research - it doesn’t already exist - is is not on the internet.

Question 4

What is secondary market research?

Answer 4

Secondary research - it is research that ALREADY EXISTS & is on the internet.

Advantage - it already exists so it is CHEAPER to get hold of - might be in a newspaper, government report or on an Internet search

Question 5

What is a FOCUS GROUP?

Answer 5

A Focus Group is when a small group of people discuss their opinion of a product.

eg group of mums discussing new snacks for toddlers

It is a Primary method of Market Research

Question 6

What is the purpose of MARKET RESEARCH?

Answer 6

The PURPOSE of market research is to find out what:-

. CUSTOMERS NEED OR WANT so the business can be more SUCCESSFUL and increase profits
. It can SPOT A GAP in the market

Question 7

What are the methods of market research?

Answer 7

The methods of market research are:

. Primary Market Research (collecting new information) - eg focus groups, surveys, questionnaires, interviews - it can be EXPENSIVE to collect up-to-date
. Secondary Research (looks at old info already collected) - eg internet research, government reports, newspapers - it is CHEAP to collect

Question 8

QUANTITative market research data

Answer 8

QUANTITative market research data

Is is data that can be MEASURED in numbers/figures eg how many times you might buy the product

Question 9

QUALITative market research data?

Answer 9

QUALITative market research dat give infor about PEOPLE’s FEELINGS & OPNIONS

Question 10

Product Life Cycle - 5

Answer 10

Product Life Cycle

1. R&D (no sales just cost of research and development)
2. Introduction (small amount of sales
3. Growth (steepest part of sales curve) Profit increase
4. Maturity (highest point of sales). Demand is at its highest for product. Still good profits
5. Decline (demand is falling away) Profits declining as demand decreases for product. Rival products may take over

Question 11

What is an extension strategy?

Answer 11

An extension strategy - EXTENDS the LIFE of a PRODUCT by doing the following:

. Updating the packaging - more eye catching - change colours - stands out on shelves - instead of choc bar change to ‘share bag’

. Adding more/different features - eg mobile phones extra features - increase demand

. Changing target market - make it more trendy to appeal to teens

. advertising - change from radio to recommendations by Influences

. Price reduction

Question 12

What is a disadvantage of an extension strategy?

Answer 12

A disadvantage of an extension strategy is:

. It might have to spend more on the product - eg re-package a choco in a ‘share bag’ instead of a bar. This takes cash away from other parts of the business.

Question 13

What is the point called at the end of a product life cycle? (sales are nearly zero)

Answer 13

The point at the end of a product life cycle when sales are nearly zero is when the product is

OBSOLETE (when it is no longer needed)

Question 14

What is segmentation?

Answer 14

Segmentation is:

. SPLITTING up the MARKET into group by eg

AGE - INCOME - LOCATION

So could you aim your product at the teen market segment

Question 15

What is a product portfolios?

Answer 15

A Product Portfolio is:

The RANGE of different products that a business CURRENTLY sells

eg Cadburys Product Portfolio - Oreo, Dairy Milk, Tolberone, Wispa, Freddos etc

Question 16

What is product Differentiation?

Answer 16

Product DIFFERENTitation is:

To make the product different from your competitors eg

Add unusual flavours to your cup cakes

Adv : different flavours might appeal to a new market segment - eg teens

Disa: different flavours might be rejected by the market and they won’t buy them - therefore company will have wasted its resources developing the new products

Question 17

Why is it good for a company to have a strong BRAND IMAGE?

Answer 17

A strong BRAND IMAGE will:

. help customers find the product on SHELVES - eg strong logo or packaging - easy to find
. Customer more likely to buy from a brand that they KNOW than the competitors - creating more profit for the company

Question 18

Why does a business create a USP?

Answer 18

A USP give a business an UNIQUE SELLING POINT

Question 19

What happens to the cost of a product when you add features?

Answer 19

Adding features to a product will always INCREASE THE PRICE

Question 20

What is the main use of an EXTENSION STRATEGY?

Answer 20

An EXTENSION STRATEGY will extend the life of a product and therefore increase sales of the product.

Eg Twirl - an extension strategy might be to produce ‘share bags’ - this will lengthen the life of the product and therefore increase sales and profits for the company

Question 21

What is a PRODUCT PORTFOLIO?

Answer 21

A PRODUCT PORTFOLIO is the RANGE of products.

Eg Cadburys product portfolio is:

Wipsa; Oreo, Chocolate Buttons etc

Question 22

What show the level of sales of a product over time?

Answer 22

A PRODUCT LIFE CYCLE shows the SALES OF PRODUCT OVER TIME

Question 23

What is a Boston Matrix?

Answer 23

A Boston Matrix is:

. A TOOL for looking at a companies products

. 4 sections

. Stars

. Questions Marks

. Cash Cows

. Dogs