Marketing

Question 1

Exchange

Answer 1

When someone gives up something in return for something else e.g. a business exchanges a
product for money

Question 2

Need

Answer 2

Something that needs to be fulfilled for us to survive

Question 3

Want

Answer 3

What we would like to satisfy our needs

Question 4

Customer

Answer 4

Someone who buys a product from a business

Question 5

Consumer

Answer 5

Someone who uses goods and services produced by businesses

Question 6

Sales volume

Answer 6

Measures the number of items sold

Question 7

Sales value

Answer 7

Measures the revenue generated

Question 8

Segmentation

Answer 8

Occurs when a market is divided into different groups of needs and want (Gender, Age, Income, Location)

Question 9

Market research

Answer 9

The process of gathering, analysing and processing data relevant to marketing decisions. Collects information about demand, competition and target market

Question 10

Market segment

Answer 10

A group of similar needs within the overall market

Question 11

Primary market research

Answer 11

(Also called ‘field research’), which involves gathering information for the first time, for example using questionnaires to conduct a survey of potential customers

Question 12

Secondary market research

Answer 12

(Also called ‘desk research’), which involves using data that already exists, for example, using information in a newspaper or published on a website

Question 13

Market share

Answer 13

The percentage of sales in a particular market recorded by a business

Question 14

Qualitative market research

Answer 14

Collecting information about potential customers’ opinions and preferences about the attributes/characteristics/properties of a product; open questions allow respondents to express their own views by not limiting their responses

Question 15

Quantitative market research

Answer 15

Using sampling techniques such as surveys where the findings are expressed numerically; closed questions allow a limited choice of responses and are easy to turn into statistics for analysis

Question 16

Demand

Answer 16

The quantity of a particular product that will be bought at particular price over a specific time

Question 17

Competition

Answer 17

The rivalry between businesses looking to sell their goods/services in the same market

Question 18

Target market

Answer 18

The particular group of customers to which a business aims to sell its product; a particular market segment

Question 19

Value of sales(Formula)

Answer 19

Selling price per unit × Number of units sold

Question 20

Market growth(Formula)

Answer 20

(Change in the size of the market over a period ÷ Original size of the market) × 100

Question 20

Market growth(Formula)

Answer 20

(Change in the size of the market over a period ÷ Original size of the market) × 100

Question 21

Market share(Formula)

Answer 21

(Sales of one product OR brand OR business ÷ Total sales in the market) × 100

Question 22

Questionnaire

Answer 22

A list of questions that is put to a member of the target population; either presented orally or in writing (P)

Question 23

Surveys

Answer 23

Asks questions to get opinions and learn about customers’ experiences with a product or service (P)

Question 24

Focus groups

Answer 24

A focus group is a group interview. It can take place in person or online. In a focus group, people are asked questions or given scenarios and asked for their opinions about a product or service (P)

Question 25

Observations

Answer 25

watching customers to find out their reactions to certain products or services. For example, this could involve watching someone try a drink for the first time or monitoring which products a customer notices first when they go into a shop. (P)

Question 26

Advantages of Primary Research

Answer 26

Advantages:
- Specific to that business
- Provides much more detailed information
- Relevant and up-to-date
- Can gather a mixture of quantitative and qualitative data

Question 27

Disadvantages of Primary Research

Answer 27

Disadvantages:
- Time consuming
- Expensive
- Difficult to collect these type of data

Question 28

Internet research

Answer 28

Data taken from competitors’ websites, newspaper articles and social media. This provides a business with information relating to its industry and the types of products and services other businesses offer. (S)

Question 29

Market reports

Answer 29

They may give specific information about an industry as a whole. This could help a business decide which customers to target.

Question 30

Government reports

Answer 30

Consist of general information that is not usually industry specific but can still be useful for a business. A business may use this information to decide what level of pay to offer potential employees

Question 31

Advantages of Secondary Research

Answer 31

Advantages:
- Quick and easy to gather
- Provides Industry-specific information
- Often easy to analyse

Question 32

Disadvantages of Secondary Research

Answer 32

Disadvantages:
- Not specific to that business
- Could be out of date
- May be biased or inaccurate