Marketing

Question 1

Purpose of marketing

Answer 1

Informing customers
Identifying and understanding customers through market research
Increasing sales

Question 2

What is market research

Answer 2

The collection of data on customers habits to help decision making in marketing

Question 3

4ps

Answer 3

Product
Price
Place
Promotion

Question 4

Primary research methods

Answer 4

Questionnaire, trials, focus groups, interviews

Question 5

What is a trial

Answer 5

Product is sold in an area for short period of time to see whether it is a success or not

Question 6

Advantages and disadvantages of questionnaire

Answer 6

A- cheap, easy to target customers
D- people may not understand question, people may not be interested in product

Question 7

Advantages and disadvantages of interview

Answer 7

A- question can be explained, easy to target specific market
D- expensive , not everyone will want to be interviewed

Question 8

Advantages and disadvantages of trialling

Answer 8

A- reduce risk , good to see if it’s a product people want
D- area tested may not be representative of target market

Question 9

Advantages and disadvantages of focus groups

Answer 9

A- people will be representative of potential customers
D- only be small group, costly

Question 10

Secondary research

Answer 10

Census data, newspaper , websites, internal data

Question 11

Ways of segmenting market

Answer 11

Gender, age, location, income, lifestyle

Question 12

Pricing methods

Answer 12

Skimming , penetration , competitor, promotional, cost plus

Question 13

What is skimming pricing

Answer 13

Price starts high then reduced

Question 14

What is promotional pricing

Answer 14

Price is lowered to persuade customers to buy stock that remains or to buy product that sales are slowing down

Question 15

What is penetration pricing

Answer 15

Price starts low then increases

Question 16

Ways of adverting

Answer 16

Social media, websites, tv, radio

Question 17

Promotion examples

Answer 17

Price reductions
Entered into competitions
Loss leaders
Free samples

Question 18

What is market share

Answer 18

Percentage of total sales in market

Question 19

What is primary market research

Answer 19

Data that is collected first hand, often in the form of questionnaires, interviews and focus groups

Question 20

Advantages of primary market research

Answer 20

-specific to your company
-confidential findings
-up to date information
-customised data

Question 21

Disadvantages of primary market research

Answer 21

-can be expensive
-time consuming
-can provide misleading or inaccurate results if sample size is not big enough
-getting people to complete survey

Question 22

What is secondary research

Answer 22

Collection of data using research and information provided by others such as magazines, journals and the internet

Question 23

Advantage of secondary research

Answer 23

-little or no cost has collected by someone else
-readily available

Question 24

Disadvantages of secondary research

Answer 24

-information specific for someone else’s business
-information should be carefully interpreted
-could be from a long time ago so no longer accurate

Question 25

What is qualitative data

Answer 25

Data based on opinions of those being asked

Question 26

What is quantitative data

Answer 26

Data based on facts and numbers, usually easier to analyse

Question 27

What is census data

Answer 27

Information about all of uk households every 10 years, includes information on number of people in household and income

Question 28

What is digital distribution

Answer 28

Distribution of goods, and services digitally by downloading from a website

Question 29

What is physical distribution

Answer 29

Distribution of a good or service using a physical presence such as a shop or office

Question 30

What is market data

Answer 30

Information that can help marketing decisions, includes data on such things as market share and changes in demand