Marketing

Question 1

marketing

Answer 1

the process of identifying, anticipating and satisfying customer needs profitably

Question 2

market size

Answer 2

the number of sales by value or volume in a market as a whole

Question 3

market growth equation

Answer 3

(new market - old market size) / old market size x100

Question 4

market share equation

Answer 4

sales/total market share x100

Question 5

sales growth equation

Answer 5

(sales this year - sales last year)/ sales last year x100

Question 6

market

Answer 6

place where people buy and sell things

Question 7

market research

Answer 7

the process of gathering information about the market

Question 8

primary research

Answer 8

research the business conducts themselves

Question 9

secondary research

Answer 9

research conducted by other businesses

Question 10

sample

Answer 10

a sample is a group of subjects that has been chosen from a larger group, the population for investigation

Question 11

what are the 3 types of sampling?

Answer 11

random
quota
stratified

Question 12

random sampling

Answer 12

names picked randomly from a list

Question 13

quota sampling

Answer 13

people that fit into a specific category are picked (eg. women)

Question 14

stratified sampling

Answer 14

the population is first segmented into subgroups before respondents are randomly selected from within that subgroup

Question 15

confidence interval

Answer 15

used to assess the reliability of sampled data

“A common confidence interval acceptable to management is 95%. This means that 19 out of 20 samples taken (95%) will give results that are representative of the overall population.”

Question 16

confidence level

Answer 16

the degree to which statistics are a reliable predictor of actual events

Question 17

what are 3 factors that influence confidence intervals?

Answer 17

sample size
population size
percentage of sample choosing a particular option

Question 18

correlation

Answer 18

a link between two factors

Question 19

time series analysis

Answer 19

looking at data over time

Question 20

extrapolation

Answer 20

using past data to extend an identified trend into the future

Question 21

price elasticity of demand
(PED)

Answer 21

a measure of how responsiveness demand is to a change in price

Question 22

when PED is greater than 1 then what is the product?

Answer 22

elastic

Question 23

when PED is less than 1 then what is the product?

Answer 23

inelastic

Question 24

price elastic

Answer 24

a change in price will cause a change in demand

Question 25

price inelastic

Answer 25

a change in price will not cause a change in demand (for example insulin)

Question 26

income elasticity of demand (YED)

Answer 26

where the responsiveness of demand to a change in income

Question 27

when YED is greater than 1 then what is the product? (ignoring - +)

Answer 27

elastic

Question 28

when YED is less than 1 then what is the product? (ignoring - +)

Answer 28

inelastic

Question 29

what does it mean if YED is negative?

Answer 29

the product is an inferior good

Question 30

what does it mean if YED is positive?

Answer 30

the product is a normal good

Question 31

normal good

Answer 31

where an increase in income results in an increase in demand (usually luxury and branded goods)
eg. walkers crisps

Question 32

inferior goods

Answer 32

where an increase in income results in a decrease in demand
eg. Aldi, shop’s own products

Question 33

list some technology which can be used to gather data on customers

Answer 33

loyalty schemes
social networking sites
search engines
wifi signals

Question 34

targeting

Answer 34

the process of deciding which segment of the market to focus on

Question 35

seasonal fluctuations

Answer 35

fluctuations that repeat on a seasonal basis (eg. Easter egg sales being high around Easter)

Question 36

product portfolio

Answer 36

the range of products a business sells

Question 37

what does STP stand for?

Answer 37

segmentation, targeting and positioning

Question 38

what are the pros and cons of segmentation?

Answer 38

+allows for specific advertising
+helps know needs and wants of customers
+helps to build a strong brand image
-difficult to know who to target
-may be too specific
-companies may ignore lucrative segments

Question 39

Market segmentation

Answer 39

Dividing a market into parts that reflect different customer needs and wants

Question 40

What are the parts of the product life cycle?

Answer 40

Development
Introduction
Growth
Maturity
Decline

Question 41

Product life cycle

Answer 41

A technique used to track the stages of a product goes through during its life

Question 42

What are on the axis of a Boston matrix?

Answer 42

Y axis- market growth
X axis- market share

Question 43

On the Boston matrix what category is a product if it has high market growth and high market share?

Answer 43

Star

Question 44

On the Boston matrix what category is a product if it has high market growth and low market share?

Answer 44

Question mark

Question 45

On the Boston matrix what category is a product if it has low market growth and high market share?

Answer 45

Cash cow

Question 46

On the Boston matrix what category is a product if it has low market growth and low market share?

Answer 46

Dog

Question 47

Price

Answer 47

The money charged for a product or service

Question 48

Price skimming

Answer 48

Involves setting a high initial price for a new product in order to recoup costs