Marketing

Question 1

Customer relationships

Answer 1

are communicating with customers to encourage them to become loyal to the business and its products

Question 2

Primary research

Answer 2

the collection and collation of original data via direct contact with potential or existing customers

Question 3

Secondary research

Answer 3

uses information that has already been collected and is available for use by others

Question 4

A sample

Answer 4

is a group of people who are selected to respond to a market research exercise, such as a questionnaire

Question 5

A focus group

Answer 5

a group of people who are representative of the target market

Question 6

A random sample

Answer 6

is when people are selected at random as a source of information for market research

Question 7

A quota sample

Answer 7

is when people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research

Question 8

The product life cycle

Answer 8

describes the stages a product will pass through from its introduction, through its growth until it is mature, and then finally, its decline

Question 9

Extension strategy

Answer 9

is a way of keeping a product at the maturity stage of the life cycle and extending the cycle

Question 10

Competitive pricing

Answer 10

when the product is priced in line with or just below competitors’ prices to try to capture more of the market

Question 11

Cost-plus pricing

Answer 11

is the cost of manufacturing the product plus a profit mark-up

Question 12

Penetration pricing

Answer 12

is when the price is set lower than the competitors’ prices in order to be able to enter a new market

Question 13

Price skimming

Answer 13

is where a high price is set for a new product on the market

Question 14

Dynamic pricing

Answer 14

is when businesses change product prices, usually when selling online, depending on the level of demand

Question 15

Promotional pricing

Answer 15

is when a product is sold at a very low price for a short period of time

Question 16

Price elastic

Answer 16

Price elastic demand is where consumers are very sensitive to changes in price

Question 17

Price inelastic

Answer 17

demand is where consumers are not sensitive to changes in price

Question 18

A distribution channel

Answer 18

is the means by which a product is passed from the place of production to the consumer

Question 19

An agent

Answer 19

is an independent person or business that is appointed to deal with the sales and distribution of a product or a range of products

Question 20

Promotion

Answer 20

is where marketing activities aim to raise customer awareness of a product or a brand, generating sales and helping to create brand loyalty

Question 21

Advertising

Answer 21

means paying for communication with potential customers about a product to encourage them to buy it

Question 22

informative advertising

Answer 22

is where the emphasis of advertising or sales promotion is to give full information about the product

Question 23

Persuasive advertising

Answer 23

is advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it

Question 24

Sales promotions

Answer 24

are incentives such as special offers aimed at consumers to achieve short-term increases in sales

Question 25

Social media marketing

Answer 25

is a form of internet marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals. It includes activities such as posting text and image updates, videos, and other content that achieves audience engagement as well as paid social media advertising

Question 26

Viral marketing

Answer 26

is when consumers are encouraged to share information online about the products of a business

Question 27

E-commerce

Answer 27

is the ‘online’ buying and selling of goods and services using computer systems linked to the internet and apps on mobile (cell) phones

Question 28

A marketing strategy

Answer 28

is a plan to combine the right combination of the four elements of the marketing mix for a product or a service to achieve a particular marketing objective(s)