Marketing

Question 1

What is the difference between marketing and advertising?

Answer 1

marketing identifies customer needs to meet them whereas advertising promotes the company and its products through a paid channel

Question 2

what are the 4 marketing objectives?

Answer 2

• sales volume and value
• market share
• sales growth (a target based on a % of volume or value)
• market size and growth

Question 3

what is the difference between correlation and causation?

Answer 3

correlation is when there is a statistical association between variables whereas causation is when a change in one variable cause a change in another

Question 4

what is statistical significance?

Answer 4

a way to measure if results of studies are due to chance or a factor of interest

Question 5

what is the difference between primary data and secondary data?

Answer 5

primary data is collected and gathered first hand but secondary data is collected by someone else other than the current researcher

Question 6

what is confidence interval?

Answer 6

the mean of your estimate +and - the variation in that estimate

Question 7

what is extrapolation?

Answer 7

taking incomplete data and using it to predict future outcomes

Question 8

what does price elasticity do?

Answer 8

it measures how much demand for a product changes in relation to the change in price

Question 9

what is the difference between price elastic and price inelastic?

Answer 9

price elastic means a small change in price has caused a huge change in demand (e.g. -2)

whereas…

price inelastic means the change in demand is smaller than the change in price (e.g. -0.5)

Question 10

what does income elasticity do?

Answer 10

measures how much demand for a product changes in relation to fluctuations in the income levels of customers

Question 11

what are inferior goods?

Answer 11

when you buy less of the product when you have more money or buy more of the product when you have less money (e.g. branded and store made products)

Question 12

what are the 7 p’s of marketing?

Answer 12

• product
• price
• place
• promotion
• people
• process
• physical evidence

Question 13

what are the 4 sections of market segmentation?

Answer 13

• demographic
• geographic
• psychographic
• behavioural

Question 14

what does STP stand for?

Answer 14

segmentation, targeting markets, positioning

Question 15

what are the four stages of the product life style?

Answer 15

• launch
• growth
• maturity + product extension
• decline

Question 16

what are 5 ways to product extension?

Answer 16

• advertising
• price reduction
• adding value
• explore new markets
• new packaging

Question 17

what is cost plus pricing?

Answer 17

where once total costs are added up a marked - up % is added to ensure profit is made

Question 18

what is penetration pricing?

Answer 18

when products are sold at a low initial price, before increasing once sales have peaked

Question 19

what is price skimming?

Answer 19

setting a high initial price when there isn’t a lot of competition and people who are willing to pay the price will buy the product, then when competition enters, the price is lowered to keep up sales

Question 20

what is premium pricing?

Answer 20

when a business deliberately sets high prices to make their product seem the most reliable/best quality against other competitors with lower prices

Question 21

what is loss leader pricing?

Answer 21

when a business sets prices lower than their costs to attract more customers are prices are much lower than competitors

Question 22

what is destroyer pricing?

Answer 22

when a company sets really low prices to drive competitors out of business

Question 23

what is psychological pricing?

Answer 23

using offers and discounts to encourage buyers