marketing

Question 1

what are the pricing strategies?

Answer 1

• price-skimming
• cost-plus
• loss leader
• competitive
• penetration

Question 2

what does price-skimming pricing do?

Answer 2

start with a high price and then reduced over time

Question 3

what does cost-plus pricing do?

Answer 3

working out the cost of making a product and then adding on a percentage

Question 4

what does loss leader pricing do?

Answer 4

selling one product at a loss so a customer has to buy additional products that will generate a profit

Question 5

what does competitive pricing do?

Answer 5

set a similar price to your competitors

Question 6

what does penetration pricing do?

Answer 6

start with a low price and increase it over time

Question 7

whats included in the boston matrix?

Answer 7

• dogs
• cash cows
• stars
• question marks

Question 8

what are the 4 elements of the marketing mix?

Answer 8

• price
• product
• promotion
• place

Question 9

what are the factors that influence a price?

Answer 9

• cost
• demand
• nature of the market
• product life cycle
• competition

Question 10

what is product differentiation?

Answer 10

when businesses need to stand out from competitors they can do this by:
- building brand image
- having a USP

Question 11

what does the star mean in the boston matrix?

Answer 11

these products have high market share in a fast-growth market

Question 12

what does the cash cow mean in the boston matrix?

Answer 12

these products have high market share in a low-growth market

Question 13

what does the ? mean in the boston matrix?

Answer 13

these products have a low market share in a fast-growth market

Question 14

what does the dog mean in the boston matrix?

Answer 14

these products have a low market share in a low-growth market

Question 15

how to work out profit

Answer 15

revenue - total costs

Question 16

how to work out revenue

Answer 16

selling price x no. of items sold

Question 17

how to work out total costs

Answer 17

fixed costs + variable costs

Question 18

how to work out total variable costs

Answer 18

variable cost per unit x no. of units sold

Question 19

how to work out total fixed costs

Answer 19

add up all the prices that stay the same

Question 20

how to work out average yearly profit

Answer 20

total profits / no. of years

Question 21

how to work out average yearly profit

Answer 21

total profits / no. of years

Question 22

how to work out market growth

Answer 22

change in size of market between years / size of market in 1st year x 100

Question 23

how to work out sales growth in %

Answer 23

sales this year - sales last year / sales last year x 100

Question 24

how to work out market share

Answer 24

sales of one product OR brand OR business / total sales in the market x 100

Question 25

what is the product life cycle and whats included in it?

Answer 25

the product life cycle shows the sales of a product from its development to its decline
the stages are :
- introduction
- development
- growth
- maturity
- decline

Question 26

whats an extension strategy?

Answer 26

prevents a product from going into the decline life stage

Question 27

what can be used as an extension strategy?

Answer 27

reducing the price
advertising
new packaging
new features

Question 28

whats included in a distribution channel?

Answer 28

producers
wholesalers
retailers
customers

Question 29

what are the ways a distribution channel can be set up?

Answer 29

producer -> customer
producer -> wholesaler -> customer
producer -> wholesaler -> retailer -> customer

Question 30

what are the ways a product can be promoted?

Answer 30

• advertisement
• PR
• sales promotion
• sponsorship
• social media
• personal selling

Question 31

why do businesses do market research?

Answer 31

to collect information about the:
- demand of a product
- target markets needs and wants in a product
- competition

Question 32

what are some methods of market research?

Answer 32

• questionnaires : PRIMARY
• surveys : PRIMARY
• interviews : PRIMARY
• focus groups : PRIMARY
• internet research : SECONDARY
• newspapers : SECONDARY

Question 33

whats the difference between qualititive data and quantitative data?

Answer 33

qualitative = data in the form of words and descriptions
quantitative = data comes in the form of numbers

Question 34

what is e-commerce?

Answer 34

the buying and selling of products and services using devices connected to an electronic network, such as the internet.

Question 35

what is m-commerce?

Answer 35

buying and selling of goods and services online through a mobile device