Marketing

Question 1

What is Field Research?

Answer 1

This involves finding out information first hand (primary information) directly from the public/consumer.

Question 2

What are some advantages of Field Research?

Answer 2

Information is gathered specific to your purpose.
Information is up-to-date.

Question 3

Name some disadvantages of Field Research.

Answer 3

It is more expensive to gather compared to desk research.
It is more time consuming to gather compared to desk research.
People may not always give truthful answers in response to questions.

Question 4

What is Desk Research?

Answer 4

This uses secondary data, which is information which is already available, either from inside the business or from outside the business.

Question 5

Name some advantages of Desk Research.

Answer 5

It is cheaper to access existing information rather than having to collect information from scratch.
It is less time consuming to gather compared to field research.

Question 6

What are some disadvantages of Desk Research?

Answer 6

Information may be out of date.
Information is available to our competitors.

Question 7

Name the methods of Field Research.

Answer 7

Questionnaires/Surveys
Consumer Panels
Test Marketing

Question 8

What is the definition of a Questionnaire?

Answer 8

These are forms which contain a series of questions. They are designed to obtain answers to questions which will help gain peoples’ opinions.
A sample of people will be questioned.
Examples include: face-to-face, by telephone or by post

Question 9

What is a consumer panel?

Answer 9

This is when a group of people are gathered together and are given a product to look at. This allows initial reactions to be recorded. Their opinions are obtained on the design of the product, colour, shape etc and what they like and dislike about the product.

Question 10

What is test marketing?

Answer 10

The product is tried out on a small section of the market, in a limited area eg Aberdeen only.
Allows teething problems to be sorted out before the launch of the product nationally or worldwide

Question 11

Name 5 forms of Desk Research.

Answer 11

Sales Figures
Government Statistics
Newspapers
Reports
Internet Websites

Question 12

Name, in order, the stages of the product life cycle.

Answer 12

Introduction, Growth, Maturity, Decline

Question 13

Describe the Introduction stage of a product.

Answer 13

The product is launched on to the market.
It is heavily advertised and promoted at this stage in order to make customers aware of the product.
The product is making a loss for the firm.

Question 14

Describe the Growth stage of a product.

Answer 14

Sales are starting to increase.
The product is becoming known.
Advertising is continuing, although at a lower level than the initial launch.
The product is beginning to make a profit for the firm.

Question 15

Describe the Maturity stage of a product.

Answer 15

Sales reach their peak and profit levels are at their highest.
The product is well established in the market.
Advertising is used as a reminder to consumers.

Firms will try to stay at this point for as long as possible due to the high profits being made.
Firms will try to introduce new models or variations of the product, or revitalise their advertising campaign to promote sales.

R & D costs are likely to have been paid off.
Competitors are introducing products to compete with ours.

Question 16

Describe the Decline stage of a product.

Answer 16

Sales and profits are falling.
The product becomes out-of-date.
There are more rival products on the market.

Question 17

Name the 4 P’s of marketing

Answer 17

Price, Promotion, Place, People

Question 18

What is marketing?

Answer 18

The anticipation, identification and fulfilment of consumers’ needs.

Question 19

What is a market segment?

Answer 19

A market segment is a group of buyers with similar characteristics

Question 20

Name 5 market segments.

Answer 20

Age, Gender, Geographic Location, Income, Family size

Question 21

What is market research?

Answer 21

The gathering, recording and analysing of information about the possible market for a good or service.

Question 22

Name 5 things that should be found through market research.

Answer 22

If there is a gap in the market
Exactly what the customer wants from the product
What effect a price change would have
The type of advertising which may be beneficial.
What our competitors are doing

Question 23

What are the 2 types of Market Research?

Answer 23

Field and Desk

Question 24

What is a brand?

Answer 24

A brand is a company ‘Heinz’ or a product ‘Persil’ with a name which makes it instantly recognisable.

Question 25

Name 5 key features of a Brand.

Answer 25

❖ Brands have unique logos and packaging.
❖ Branded products are seen to be of high quality.
❖ Brand loyalty can be created.
❖ Branded products are easily recognisable.
❖ Branded products can be sold at a higher price (or premium price) than similar products because the quality of the product is usually higher and because these brands are heavily advertised, and customers are therefore more aware of the advantages claimed for these products.

Question 26

What is an Own Brand?

Answer 26

Own Brands are products which are sold under the name of a supermarket or other retailer, rather than under the name of the manufacturing firm.

Question 27

Identify 3 key features of Own Brands

Answer 27

Own brands are usually cheaper than branded products
Own brands are usually seen as being of inferior quality
Own brands appeal to the sector of the market to whom price is important