Marketing

Question 1

Sales process

Answer 1

Series of steps taken from when the potential buyer meets the prospective seller until after the final sale is made

Question 2

Customer engagement

Answer 2

The business and customers communicate through the sales process

Question 3

Customer loyalty

Answer 3

A business’ customers make repeat purchases because they prefer the business’ products to those of its rivals

Question 4

Premises

Answer 4

Buildings used by businesses e.g. offices, shops and factories

Question 5

Customer service

Answer 5

The interaction between the business and the customer where the business understands consumer needs before, during and after the sale of a good or service
Good customer service can result in:
Increased customer loyalty, good reputation and attracting new customers. These should then lead to increased sales revenue, higher market share and increased profits

Poor customer service:
Dissatsified customers who may not return to the business and difficult to attract new customers

Features:
Greeeting the customer, interacting with the customer. identifying their wants and needs, encouraging feedback and responding to feedback

Question 6

Feedback

Answer 6

Response by a customer following the purchase of a good or service. This will be used by the producer to improve what has been produced

Question 7

After-sales service

Answer 7

Meeting of customers’ needs after they have purchased a product e.g. repairing or servicing the product

Question 8

Online customer service

Answer 8

When buying online a customer will still expect a certain level of customer service and a business will have to adapt to the features of good customer service to their website
Can be done by:
Website design and data analysis of the customer

Question 9

Functions of marketing department

Answer 9

Market research, promotion and customer service

Question 10

Mass markets

Answer 10

Large market of customers which is undifferentiated and that sells products and services to suit a large number of people

Question 11

Niche markets

Answer 11

Smaller part of a large market, with products tailored to specific customer needs

Question 12

Competitive environment

Answer 12

A number of businesses attempting to persuade consumers to buy their products. Competition will be based on price, design and quality

Question 13

Market segmentation

Answer 13

Dividing the market into parts which have specific characteristics e.g. age and gender

Question 14

Marketing mix

Answer 14

Combination of factors which help a business to sell its products. It is usually considered to involve product, price, promotion and place

Question 15

Market research

Answer 15

The way in which information and data is gathered about consumers, competitiors and market trends

Question 16

Focus groups

Answer 16

Consumers are brought together by businesses to discuss their reactions to products before they’re launched

Question 17

Consumer panels

Answer 17

Recruited by research companies to represent the view of consumers in a particular sector. They will be asked to comment on things like product design and taste or branding and advertising of products

Question 18

Primary research

Answer 18

Field research. Collecting research that doesn’t already exist
E.g. questionnaires and focus groups
Pros-
Up to date, specific to business’ needs and provides answers to exact questions that a firm may be interested in
Cons-
Expensive to collect, time consuming and can have problems of bias

Question 19

Secondary research

Answer 19

Desk research. Using information that already exists
E.g. newspapers and census data
Pros-
Inexpensive to collet and quick to obtain
Cons-
Often out of data, little control over quality and might not be available

Question 20

Qualitative data

Answer 20

Collection of data about attitudes, beliefs and intentions. E.g. interviews and focus groups

Question 21

Quantitative data

Answer 21

Collection of data that can be measured e.g. surveys and government publicatios

Question 22

Product

Answer 22

Any good or service offered for sale to customers

Question 23

Product portfolio

Answer 23

Collection of all the goods and servcies offered by a business

Question 24

Product diffferentiation

Answer 24

Distinguishing a product of service from others. By making a product different or appearing to be different from similar products sold by rivals, a business will hope to attract more customers

Question 25

USP

Answer 25

What makes a product different from ones sold by competitiors. Involve the lowest price, best quality or the first of it’s kind
Help a business gain a competitive advantage over its rivals and help justify why a premium price may be being charged

Question 26

Brand

Answer 26

Unique design, sign, symbol and words creating a unique image that identifies a product and differentiates it from the competitiors
Branded products tend to be:
Trusted by consumers, products are unique and customers loyal to the brand
Why do businesses brand their product?
Differentiates products from rivals and global markets more likely

Question 27

Why sell high quality products?

Answer 27

High levels of customer satisfaction, improve image and less complaints

Question 28

Why do businesses sell a wide range of products?

Answer 28

Attract more customers, greater revenue and competitior advantages

Question 29

Product life cycle

Answer 29

Stages a product passes from its earliest development until it is no longer availabe on the market.
Development, introduction, growth, maturity and situation and decline

Question 30

Product life cycle

Answer 30

Stages a product passes from its earliest development until it is no longer availabe on the market.
Development, introduction, growth, maturity and situation and decline
Falls in product life cycle:
Same quantity of goods sold, products last longer and goods available from alternative suppliers

Question 31

Product research and development

Answer 31

Firms spends money on research and development to create a new product before launching it onto the market and the business will be investing heavily in the product but not receiving any revenue from sales

Question 32

Product launch/introduction

Answer 32

Products introduced to the market, costs are high and business making no profit

Question 33

Product growth

Answer 33

Early stage when sales and profits are rising, consumers become familiar with the product, business continues to promote the product to help generate brand awareness and sales increase

Question 34

Product maturity

Answer 34

Sales reach their peak and start to level off, competition may become stronger but the business will spend less on promotion and a business will want to maintain this stage for as long as possible as their sales are at the highest

Question 35

Production saturation

Answer 35

Market is full as competitiors introduce similar products, potentional customers who want the product have already purchased it and business will look for new markets e.g. sell overseas

Question 36

Product decline

Answer 36

Product sales start to fall and the firm will decide on either an extension strategy or discontinuing the product

Question 37

Extension strategy

Answer 37

A number of methods businesses might use to prolong the life cycle of their products.
E.g. new flavours, produce different quality, new promotions, market in different places and develop new but similar products

Question 38

Purposes of packaging

Answer 38

Protection, keep product fresh/clean and information

Question 39

Price

Answer 39

Amount of money a business wants to receive in order to sell a good or service or the amount of money the consumer is willing to pay to buy that product

Question 40

Penetration pricing

Answer 40

Setting a low price for a new product to encourage sales
Pros-
Goods have a low price to attract customers who may then stay with the business
Cons-
Prices rise people may not wont to purchase

Question 41

Price skimming

Answer 41

Setting a product at a high price in order to earn high initial profits
Pros-
Attracts early adopters e.g. new football boots
Cons-
Customers unable to pay the high prices