marketing

Question 1

Cash cow

Answer 1

High market share, low market growth

Question 2

Question mark

Answer 2

high market growth, low market share

Question 3

Star

Answer 3

High market share, high market growth

Question 4

Dog

Answer 4

Low market share, low market growth

Question 5

Diversification - Ansoffs

Answer 5

New products, new market
MOST RISKY
high marketing budget needed

Question 6

Market penetration - ansoffs

Answer 6

existing products in existing markets.
achieved through selling more products, to established customers or by finding new customers within the market
LOWEST RISK
potential risk to strategic drift

Question 7

Product development

Answer 7

New products, existing markets
development products involves thinking about the needs of customers and how to outperform competitors.
MEDIUM RISK
High marketing budgets

Question 8

Market development

Answer 8

Existing products into new markets
need for market research and segmentation
high marketing budget needed

Question 9

price skimming

Answer 9

Charging HIGH prices initially that customers pay for and then lowers overtime
USED in introduction phase
- cannot last for long
- may slow down demand for products, giving competitors more time to develop alternative products

Question 10

Price penetration

Answer 10

Lower price initially
- marketing objective - increase market share or sales volume
Benefits:
-catching competition off guard
- encourages word of mouth
- low price can act as a barrier to entry
- sales volume should be high, so distribution should be easier to maintain
drawbacks:
- temporary customers who aren’t brand loyal
- established competitors may be able to offer lower prices
- difficult to increase price later down the line

Question 11

What are the kinds of segementation

Answer 11

• geographic
• demographic
• income
• behavioural

Question 12

What is market targeting

Answer 12

deciding which segments to target

• differntiated = more than one segment in different ways
• undifferentiated- entire market the same way
• concentrated targeting= one or two segments

Question 13

Market mapping reasons

Answer 13

• spot gap in marketing
• repositioning
• evaluate pricing strategies
• see demand for products
• shows declining products
• subject to bias

Question 14

sampling

Answer 14

taking a group of people to represent an entire market

• simple random
• stratified = dividing population into groups and picking from desired group
• quota = people picked who fit category

Question 15

Tech in marketing data

Answer 15

• allows for easy analysis of large data
• less subject to human error
• eliminates bias
• expensive
• ‘big data’ requires a lot of investment as well as a lot of money spent on training employees

Question 16

Niche market

Answer 16

• premium pricing
• strong USP
• brand loyalty
• less opportunities for growth
• ## intense competition

Question 17

Factors affecting the 7 Ps

Answer 17

• economy
• comeptition
• HR = skills and resources of employees
• finances
• suppliers - offering credit is not usually available to small businesses therefore find it difficult to offer low price as they don’t benefit from economies of scale
• product type

Question 18

influences on PED

Answer 18

• brand loyalty/ strength of the business
• availability of substitutes
• income levels
• price levels
• nature of the goods

Question 19

Predatory pricing

Answer 19

illegal under UK laws

charging such low prices it force other businesses out of the market

Question 20

competitive pricing

Answer 20

• monitor competitor pricing to make their prices

Question 21

psychological pricing

Answer 21

basing prices on customer expectations

Question 22

Loss leaders

Answer 22

products sole below or at cost price. Lose money but make profit through enticing customers to the shop to them purchase other goods

Question 23

Price discrimination

Answer 23

Charging different prices to different groups of people - age at the cinema more for adults than children

Question 24

Kinds of promotion

Answer 24

• merchandising
• direct mail
• relationship marketing (loyalty cards, social media)
• event sponsorship
• advertisements
  rat

Question 25

Channels of distribution

Answer 25

Direct selling - Manufacturer to consumers
Indirect selling - manufacturer –> retailer –> consumers
Direct selling through agent = manufacture –> agent –> cosnumer
Indirect selling 2 = manufacturer –> wholesaler –>retailer –> consumer

Question 26

What is multi- channel distribution

Answer 26

selling through more than one method - online, in store
- give flexibility
- and wide market coverage
-

Question 27

Short distribution channel

Answer 27

• more profitable = only 1 party taking a percentage of the profits
• offer lower prices
• more control, more say in final selling price and how it is promoted

-

Question 28

Long distribution channels

Answer 28

• can be easier, using wholesaler means more market coverage
• established stores = established customer base
• good for inexpensive simple goods