marketing

Question 1

what is product portfolio analysis

Answer 1

this examines the market position of a firms products it involves analysing the existing product mix to help develop a balanced range of good and services and to help determine the right marketing strategy for each product

Question 2

2 reasons to have a large product portfolio

Answer 2

wider target market
reduce risk

Question 3

what is a dog

Answer 3

low market share and low market growth

Question 4

what is a cash cow

Answer 4

high market share and low market growth
cash cows generate more than us invested. so keep them

Question 5

what is a question mark

Answer 5

low market share and high market growth
require money to try increase market share

Question 6

what is a star

Answer 6

high market share and high market growth

Question 7

what is the marketing mix

Answer 7

the combination of element that influence a consumers decision where or not to buy a product

Question 8

what is a product

Answer 8

refers to all the factors relating to the design and features of the product

Question 9

what are the 7 P’s

Answer 9

price
product
place
promotion
process
people
physical environment

Question 10

why is ‘product’ an important element in the marketing mix

Answer 10

it creates differentiation to other businesses/ USP

Question 11

what the difference between a consumer good and an industrial good

Answer 11

consumer-bought by people for personal use
industrial- sold to other businesses to make another good

Question 12

what is marketing

Answer 12

the process of identifying, anticipating and satisfying customer needs and wants

Question 13

what is the marketing mix

Answer 13

it’s the combination of elements that influence a consumers decision whether or not to buy the product

Question 14

define the 7 P’s

Answer 14

price- the price set for the product
product- the physical features and specification of the product
place- the distribution channel, how the ownership of a product moves from the producer to the consumer
promotion- how a business communication about the product
people- people who serve you in a shop, people providing services
process-how you actually buy the product
physical environment- the physical premises of a business

Question 15

internal factors influencing the marketing mix

Answer 15

-changes in financial position, changes to staffing, change in objectives

Question 16

external factors influencing the marketing mix- pestc

Answer 16

political
economic
social
technology
competition

Question 17

why is knowing if demand is elastic or inelastic to marketers

Answer 17

it allows you to find the best price to set your product/services and maximise revenue

Question 18

what is demand

Answer 18

the amount of a product or service that a customer is willing to purchase at a given price

Question 19

what does price inelasticity of demand show

Answer 19

a change in price does not significantly affect demand

Question 20

what does 0 and over show for PED

Answer 20

money is not lost

Question 21

factors influencing the PED

Answer 21

advertising and type of product

Question 22

calculating price elasticity

Answer 22

%change in quantity demanded/
%change in price

Question 23

what does it mean if the number is 1 for price elastic demand

Answer 23

if the number is 1 or greater this means that the product is elastic
(a change in price will significantly affect demand)

Question 25

what does it mean if the number is less than 1 for price inelastic demand

Answer 25

if number is less than 1 it means that the product is inelastic (a change in price does not significantly affect demand)

Question 26

what happens if price increases with a price elastic demand

Answer 26

revenue decreases

Question 27

what happens if price increases with a price inelastic demand

Answer 27

revenue increases

Question 28

problems with the price elasticity of demand concept

Answer 28

-it’s only an estimate - changes in demand may not always be attributable to price-> other this may affect demand such as consumer taste or competitors actions

Question 29

what is extrapolation

Answer 29

forecasting sales is to look at what has been happening in the past and to continue this trend into the future

Question 30

what is a confidence level

Answer 30

the probability that the research findings are correct

Question 31

what is a target population

Answer 31

it’s all the terms or people that are relevant to the market research being undertaken

Question 32

what is a sample

Answer 32

a group of people or items selected go represent the target population

Question 33

benefits of sampling

Answer 33

-gives an insight of the market - flexible and relatively quick -useful research insights

Question 34

what are the risks of sampling

Answer 34

-risk of bias - smalls is unrepresentative of population

Question 35

what is sales forecast

Answer 35

projection of future sales revenue often bases on previous sales data

Question 36

uses of extrapolation 3

Answer 36

- it’s valid for forecasting sales -useful for a short period of time -to plan ahead can reduce risks

Question 37

limitations of extrapolation 1

Answer 37

predicted base off past trend however the future may change

Question 38

what is confidence level

Answer 38

it’s how certain a business are on results/ market research

Question 39

what is confidence interval

Answer 39

the possible range of outcomes for a given confidence level

Question 40

the degree of a confidence will depends on factors such as

Answer 40

- the size of the sample -how was sample constructed

Question 41

what is random sampling

Answer 41

when each individual has an equal chance of being chosen

Question 42

what is correlation

Answer 42

its forecasting statistical measures of the relationship between two or more variables in a business

Question 43

what

Question 44

2 disadvantages and 1 advantage of random sampling

Answer 44

+ simple and unbiased - may not guarantee representation of the views of larger population

Question 45

what is stratified sampling

Answer 45

it’s dividing large population into segments and samples are randomly selected from there

Question 46

3 advantages and one disadvantage of stratified sampling

Answer 46

-ensures representation from different segments of -more precision vs random -able to analyse results from each segment

Question 47

what is quote sampling

Answer 47

divide larger population into segments and they are deliberately selected from these subjects

Question 48

one advantage and disadvantage of quota sampling

Answer 48

+researchers control the composition of the sample to ensure representation of certain characteristics - prime to researchers bias not random maybe not be representative

Question 49

what are internal sources of secondary data 3

Answer 49

own records, last advertising campaigns and copies of invoices

Question 50

what are external sources of data 3

Answer 50

commercial market research organisations, the government, competitors

Question 51

primary research benefits and drawbacks

Answer 51

+ more direct to the product, up to date - takes time and is £

Question 52

secondary research benefits and drawbacks

Answer 52

+ cheap and free and accurate -unlikely to gain competitive edge as easily accessible

Question 53

why is market research useful 4

Answer 53

-to gain info on the market - what price to set -level of demand -size of the market

Question 54

insights provided by effective market research 3

Answer 54

-dimensions of the market -competitor strategies -market segments

Question 55

the size of a market can be measures in term of the

Answer 55

-number of items sold and amount of spending

Question 56

what is the call for market growth rate

Answer 56

change in size/ original market size X 100

Question 57

what is market share calc

Answer 57

the firms sales/ total market sales X100

Question 58

what is a niche market

Answer 58

where a business targets a smaller segment of a larger market where customers have specific needs/ wants

Question 59

what is mass marketing

Answer 59

where a business targets a larger segment of the market targeting the whole market as a general need eg toilet paper

Question 60

2 benefit and drawbacks of mass marketing

Answer 60

+ larger target market, increased economies of scales -increased competition and more money spent in promotion to get product recognised

Question 61

nicker marketing one benefits and drawbacks

Answer 61

+ less competition - smaller target market and more profitable

Question 62

what is market segmentation

Answer 62

the process of splitting a businesses target market into different groups

Question 63

what is demographic variables 4

Answer 63

age gender income education

Question 64

what are key behavioural variables 2

Answer 64

purchasing behaviour, brand loyalty,