Marketing

Question 1

Why is market research important

Answer 1

Reduce risk by identifying users needs and gaps in the market.

Question 2

Advantages and disadvantages of a focus groups

Answer 2

Advantages:
-detailed information given

Disadvantages:
-people may not give true opinions

Question 3

Advantages and disadvantages of questionnaires

Answer 3

Advantages:
-data representative of business
-quantitative data which is easier to analyse

Disadvantages:
-people may not complete if it’s too long

Question 4

Purposes of marketing

Answer 4

Increase sales
Inform customers
Understand consumer needs

Question 5

Advantages and disadvantages of questionnaires

Answer 5

Advantages:
Lots of data collected, representative
Easier to analyse quantitative data

Disadvantages:
Responders may not understand question, lower validity
Low response rate

Question 6

Advantages and disadvantages of market segmentation

Answer 6

Advantages:
Better matching customer needs
More effective promotion

Disadvantages:
Extensive market research needed
Research and development costs high

Question 7

Advantages and disadvantages of interviews

Answer 7

Advantages
More detailed responses

Disadvantages
Time consuming as qualitative data

Question 8

Advantages and disadvantages of focus groups

Answer 8

Advantages
Representative of target market
In depth responses

Disadvantages
Social bias
Time consuming to run/ organise

Question 9

Advantages and disadvantages of trials

Answer 9

Advantages
Reduces risk as can test demand for product
Saves on wasted investment

Disadvantages
Costly to set up
Unreliable conclusions if unrepresentative

Question 10

Advantages and disadvantages of UK census data

Answer 10

Advantages
Builds detailed image of society

Disadvantages
Goes out of date due to 10 year gaps

Question 11

Advantages and disadvantages of websites

Answer 11

Advantages
Useful for business with competitors
Cheap

Disadvantages
Time consuming
May not be up to date

Question 12

Advantages and disadvantages of sales data

Answer 12

Advantages
Cheaper than primary data

Disadvantages
Can lead businesses to make decisions based on outdated market

Question 13

Advantages and disadvantages of newspapers

Answer 13

Advantages
Widely available
Cheaper than primary

Disadvantages
Not easily analysed
May not be what business wants

Question 14

Advantages and disadvantages of cost plus pricing

Answer 14

Advantages
Easy to calculate
Ensures profit

Disadvantages
Ignores customers wants
Ignores competition

Question 15

Advantages and disadvantages of Competitor pricing

Answer 15

Advantages
Useful in competitive markets
Can help grow market share

Disadvantages
Ignores market up of a business
Quality/ service may reduce as too focused on cost saving

Question 16

Advantages and disadvantages of Promotional pricing

Answer 16

Advantages
Short term sales increase
Break brand loyalty with other brands

Disadvantages
Reduce amount of profit short term
Reduces perception of quality

Question 17

Advantages and disadvantages of Price skimming

Answer 17

Advantages
Builds reputation for high quality products
Potential for high sales revenue

Disadvantages
Low sales volume
Competitors

Question 18

Advantages and disadvantages of penetration pricing

Answer 18

Advantages
Can be promotional tool when business/ product first launches
Break customer loyalty

Disadvantages
Creates expectation from customers
Retaliation from competitors

Question 19

Advantages and disadvantages of social media

Answer 19

Advantages
Targeting customers with interest
Cheap

Disadvantages
Negative comments

Question 20

Product life cycle

Answer 20

Question 21

Extension strategies

Answer 21

Rebranding
Competitions
Upgrade technologies
Reduce prices

Question 22

Advantages and disadvantages of digital distribution

Answer 22

Advantages
Access to product 24/7
Saving delivery costs

Disadvantages
Not all suitable for digital distribution
Illegally copying and distributing