business-marketing

Question 1

four P’s of marketing

Answer 1

product- what the customer wants or needs
Price- the customer thinks is good value for money. isnt the same as being cheap
Promotion- promoted so that potential customers want to buy it
Place- used to get the product from customer to consumer

Question 2

Factors that affect the marketing mix

Answer 2

• Changes in technology- improvements in e-commerce means that more companies are selling their products online rather than in stores
  -customers needs and wants usually change over time- a business should adapt its marketing mix to meet these changing needs
• How competitive the market is and what business’s competitors are doing will also affect how a firm balances the elements of its marketing mix

Question 3

market size-

market share-

Answer 3

-number of individuals within the market which are potential buyers or sellers of the product
-is the proportion of total sales within the market that is controlled by the business

Question 4

ways a market can be segmented-

Answer 4

• age-
  -income
  -gender
• location
• lifestyle

Question 5

Market research helps businesses to

Answer 5

• make informed decisons-used to support and inform decisions
  -increased sales- the demand for a product or service is how much of it people will be willing to buy at a given price
  -stay competitive- gathering-information on the products and prices of competitors can help to show how they are different
  -reduce risks- -if a business sells a product that customers dont want or tries to sell products at a price too high it could lose a lot of money

Question 6

Primary research

Answer 6

-involves getting info from potential customers
-useful to find new info and getting opinions
-finding just a sample
-larger samples are more expensive but more accurate

Question 7

Primary research

Answer 7

-questionnaires
-surveys
-interviews
-focus groups-small group of people discuss their attitudes
-observation
trialling

Question 8

secondary research

Answer 8

-wide range of date
-market reseach reports or census
-look at their own internal data
-used by smaller businesses as its cheaper
-easily found
not always relevant

Question 9

Product life cycles

Answer 9

1 research and development-
-scientific research vital
-find the most cost effective materials
2 introduction-launched for the first time
- lots of advertising and sales promotion
-place is very important
3 growth deman increases
4 maturity-product reaches its peak
-promotion becomes alot less important
-business continue to advertise the productbut less than its launch
5 decline
- demand falls a rival takes over

Question 10

extension strategies

Answer 10

-can extend life cycle of product
-product will make profit for longer
-however it means spending more money on the product

Question 11

types extension strategies

Answer 11

• adding more or different features-
  -using new packages
  -targeting new markets
  -changing advertisemnets
  -lowering price

Question 12

product portfolio

Answer 12

range of different products that a business sells

Question 13

Boston matrix

Answer 13

• Question marks- low market share high market growth- newer product arent profitable yet need heavy marketing
  -stars high market growth high market share future cash cows
  -cash cows-high market share low market growth-in the maturity phase costs are low produced at high volumes
  dogs- low market share low market growth- lost cause

Question 14

boston matrix + product portfolio

Answer 14

-boston matrix helps a business see wether it has a balanced product portfolio
- a balanced product portfolio means a business ccan use money from cash cows into question marks so they can become stars

Question 15

differentiation

Answer 15

• can attract customers
  -USP special feature
  -promotion make it seem different
  -change the price higher makes it luxorous lower makes it more appealing
  -

Question 16

Design mix

Answer 16

-function-design must be fit for its purpose
-cost-lead to low manufacturing costs
-aesthetics- look attractive and distinctive

Question 17

developing new product- benefits

Answer 17

-new products=increase overall sales
-appeal to a new market segment
-businesses can initially charge higher prices for new products before their competitors bring similar products
-it can be good for the businesses reputation

Question 18

developing new product-risks

Answer 18

-can be very costly and time consuming process- businesses risk running out of money if they invest too much into research and development and dont get the products to market quickly enough
-businesses can end up wasting resouces
-might not be abke to prodcuce the product on large scale
-risk ruining reputation

Question 19

demand when setting prices

Answer 19

-aim to make businessesmoney from selling needs to be more than costs
-easiest way to do this is by makinh the price higher than the total cost
-firms need to think about how the price will affect demand -if prices rise demand falls
- sometimes a firm may ned to set the price of a product lower than the total cost

Question 20

Internal factors that affect price

Answer 20

-technology-the technology used by the business in every step of its process of making and marketing the product will affect pricing
-method of production-flow production may require expensive machinerybut it will also be more likely to benefit economies of scale compared to job production so products may be cheaper
-product life cycle- where a product is in the product life cycle

Question 21

external factors that affect price

Answer 21

• competition-firm needs to look at what competitors are charging for similar products
  -market segments-the nature of the market segment that a product is being targeted at will affect its price
  -cost of raw materials

Question 22

Pricing strategies

Answer 22

price penetration
loss leade
promotional
price skimming
competitive
cost plus

Question 23

price penetration

Answer 23

• charges a low price for a new product to get people to try it
  -establish market share-copetitive market
  -product will make very little profit once established the firm increases price

Question 24

loss leader

Answer 24

price of product is below cost-doesnt make a profit

Question 25

promotional pricing

Answer 25

-put an offer for a limited period of time
- help increase demand in the short term

Question 26

price skimming

Answer 26

-firms charge a higher price to begin with when they know there is a high demand
-often works for established firms
-increase revenue
-high price makes it look more desirable
-once established lower price

Question 27

competitve

Answer 27

-charge similar prices to other firms
-lots of choices
-make very little profit

Question 28

cost plus

Answer 28

cant be aksed

Question 29

why do we need promotion

Answer 29

-to inform customers about the product
-to persuade customers to buy the product
-to create or change the image of a product
-to create or increase sales

Question 30

how to promote

Answer 30

• newspapers
  -magazines
  -posters or billboards
  -leaflets flyers and business cards
  -television
  -internet adverts
  -radio

Question 31

technolofy promotion

Answer 31

-social media quick easy cheap
-targeted advertising
-e-newsletters

Question 32

sales promotion short term

Answer 32

-comperttioms
-free samples
-specila offers
-coupons]
-point of sale displays
-free gifts