marketing

Question 1

• what are the methods businesses will use for primary research

Answer 1

questionares

interviews

trails 

focus groups

Question 2

• advantages of questionaires

Answer 2

they are cheaper than interviews tp collect data

they can easily target particular consumers, for example, a questionaire sent with a gaurantee for a product

Question 3

• disadvantages of questionaires

Answer 3

it is difficult to predict how many completed questionaires will be available

the people filling in the forms may not understand the questions being asked

Question 4

• advantages of interviews

Answer 4

the interviewer can explain questions if there is a misunderstanding

customers can be targeted easily , for example, picking out certain age groups on a street to interview

Question 5

• disadvantages of interviews

Answer 5

they can be expensive because an interviewer has to be paid

customers may feel uncomfortable being interviewed whether it is being stopped in the street or on the phone

Question 6

• advantages of trails

Answer 6

as trails are conducted in a small area a business may save money by having a trail for a product or service, just in case it finds out that customers don’t want what the business has for sale

Question 7

• disadvantages of trails

Answer 7

trails are still costly to set up, the area chosen must fully reflect the target market of the business if not then money will be wasted. the business may conduct a trail and only find out what they first thought

Question 8

• advantages of focus groups

Answer 8

because focus groups are chosen to represent the target market for a business. the data from them is usually very accurate and can be relied upon to make important decisions.

Question 9

• disadvantages of focus groups

Answer 9

focus groups, though carefully chosen, are still small groups which makes the collection of data from them more expensive per person than interviews and questionnaires. the selection of people to take part in a focus group is time consuming and so costly

Question 10

• advantages of secondary research

Answer 10

as the research has already been completed by another organisation secondary research is usually much cheaper to collect

a wide range of data is readily available, especially with the growth of the internet

Question 11

• disadvantages of secondary research

Answer 11

the research information might be exactly what a business wants. remember that someone else has completed the research, unless it is internal data

the data may not be up to date. there are possible problems for a business that makes decisions based on outdated market research 

the data might not be in a form that the business can analyse easily. only by designing its own research can a business be sure that it is in the form it requires

Question 12

• what are the methods of pricing used buy business

Answer 12

competitor pricing

cost plus pricing 

penetration priticing

skimming 

promotional pricing

Question 13

• what are the 4 steps of the product life cycle

Answer 13

induction

growth

maturity

decline

Question 14

• what is the induction stage

Answer 14

when the product is launched or first put on sale. when the product is launched a business may advertise it in a number of ways, in order to make sure that it gets off to a successful start.

Question 15

• what is the growth stage

Answer 15

this is the second stage. the sales show the most rapid growth here. advertising and other promotion support change slightly as the product will be generally known to customers

Question 16

• what is the maturity stage

Answer 16

sales are towards their highest, but most importantly the rate of growth is slowing down. it may be necessary to support the product with further advertising and offers at this time to maintain sales against competition.

Question 17

• what is the decline stage

Answer 17

this is the final stage of the cycle. here sales are falling and though the product may be given some support in the form of further special promotional offers, customers see the product as old and switch to those of competitors or a newer replacement. it is at this stage that a successful business will have already developed a new product to replace the one that is in decline

Question 18

• how to extend the product life cycle

Answer 18

advertising the product more widely is often used to mountain sales. this may simply be a business claiming the product or service is new and improved, or by putting it in more modern packaging

reduce the price will make the product more attractive to consumers and so help maintain sales 

business may try and sell its product to a different target market

Question 19

methods by which market can be segmented

Answer 19

age 
gender 
income 
location 
lifestyle

Question 20

product in marketing mix

Answer 20

image and design

invention, design and innovation

Question 21

place in marketing mix

Answer 21

how the business gets the product to the consumer

the place where a product is sold

Question 22

promotion in the marketing mix

Answer 22

to inform customer about a product or service

to keep a business ahead of its competitors

to create or change the image of a business. its product and services
to maintain or increase sales

Question 23

methods of promotion

Answer 23

price reductions
competitions
free samples