Marketing

Question 0

what does it mean when it says anticipate?

Answer 0

Try to find out and predict what the consumer will want in the future

Question 1

What is marketing?

Answer 1

Marketing is the process involved in anticipating, identifying and satisfying customer needs.

Question 2

What does it mean when it says identify?

Answer 2

Finding out what consumers want (conduct market research) – There is little point in providing something that no one will buy.

Question 3

What does it mean when it says satisfy?

Answer 3

Without consumers the business will fail – you must provide information (promotion) about the right product at the rate price, distributed (place) in a convenient space.

Question 4

What is a market?

Answer 4

A meeting place for buyers and sellers to exchange money for goods/services.

Question 5

What is desk research?

Answer 5

This is looking at research that already exists. There is a wide range of secondary data which is available from within (Internal - sales records, financial information) the organisation and from out with (external - newspapers, internet, journals) the organisation

Question 6

What is field research?

Answer 6

This involves carrying out research and obtaining the information firsthand. Organisation may collect this information or pay a market research company to do it for them. This can be done using: interviews, surveys, hall tests, consumer panels.

Question 7

What is a market segment?

Answer 7

Market segment is a group of customers who have similar wants and needs.

Question 8

What are the main methods of segmentation?

Answer 8

Age, gender, geographical location, ethnicity or religion , Socio economic grouping, lifestyle.

Question 9

What are advantages of segmentation?

Answer 9

Products are developed to sit customer needs – more appropriate so more successful.
Can target specific groups with products/promotions to suit that particular segment – money is not wasted.
Helps when deciding on the best place to sell the product.

Question 10

What is mass marketing?

Answer 10

Some market segments are very large beer called mass market. A mass market has a large value of seals by volume e.g. soap powder, toothpaste, Kelloggs cornflakes.

Question 11

What is niche marketing?

Answer 11

This is when a business concentrates its entire effort and resources on serving one segment of the market – attempt to build up expertise in that Area

Question 12

What are the four P’s?

Answer 12

Product, price, place and promotion

Question 13

Why is product the most important element?

Answer 13

Product is the most important element as it determined what the price will be, how it is promoted and where is sold (place)

Question 14

What are core products and augmented products?

Answer 14

Core: provides a basic need
Augmented: is made more attractive to customer by having additional features.

Question 15

What does the product life cycle show?

Answer 15

Shows different stages a product will pass through and the levels of sales that can be expected at each stage.

Question 16

What is the development stage?

Answer 16

It is researched and tested during this stage. There are no sales but costs of development may be high.

Question 17

What is the introductory stage?

Answer 17

This is when customers are first becoming aware of product. Sales are low.

Question 18

What is the growth stage?

Answer 18

This is when sales are rising quickly, as more customers become aware of the product.

Question 19

What is the maturity stage?

Answer 19

When products are fully established. Sales have reached their peak.

Question 20

What is the decline stage?

Answer 20

When competitors join the market, sales fall and product may enter decline stage.

Question 21

Give examples of extension strategies?

Answer 21

• encourage more frequent use - get customers to use the product more; this is achieved by reducing the price
• style changes - introduce a slightly different version of product
• widen product range - produce product in different sizes, flavours

Question 22

What does the price depend on?

Answer 22

• competitors prices
• production costs
• what market segment it’s aimed at
• what prices customers will be willing to pay

Question 23

What is penetration strategies?

Answer 23

Charging a very low price to grab the attention of consumers - to break into the market

Question 24

What is promotional pricing?

Answer 24

Prices reduced for a short period of time

Question 25

What is destroyer pricing?

Answer 25

Prices are set really low to try and drive out competitors from the market

Question 26

What is discriminatory pricing?

Answer 26

Different prices are charged for the same product at different times of the day.

Question 27

What is sales promotion?

Answer 27

Having special offers such as BOGOF (buy one get one free) Free samples Vouchers Competitions

Question 28

What is celebrity endorsement?

Answer 28

This is when a business approach a celebrity to appear in their advert or be seen using their product/service.

Question 29

What is sponsorship?

Answer 29

Supporting an event/activity/org by providing money or other resources valuable to the sponsored event in return for advertising space or as part of the publicity for event.

Question 30

What is a brand?

Answer 30

The name, symbol or logo given to a group or type of product is known as a brand.

Question 31

What are factors to consider when choosing a location?

Answer 31

* closeness to customers - no point in setting up where there are no customers * closeness to suppliers - need suppliers regularly, quick deliveries, save on delivery charges * parking facilities - customers need to be able to access the business easily * premises availability size rent * competitors - choose to set up as close too or as far from competitors * environmental impact * employee availability - must have suitable skills

Question 32

Why do businesses have a brand?

Answer 32

To try beat competition, to encourage repeat purchases and try to increase market share. And can help increase profit.

Question 33

Advantages of branding?

Answer 33

* New products can be successfully introduced due to the brand name as it's already well known. * Brands are easily recognised by customers - helping customers to tell them apart from similar competitors products. * Branded products are often associated with quality and customers may be more likely to buy them

Question 34

Disadvantages of branding?

Answer 34

* time consuming and expensive for a business to establish a well known brand * poor product or one simple bad event can effect whole brand - customer put off by the whole brand * brands can be copied and fake products can be produced - reduced profits

Question 35

What is Quantitative Research?

Answer 35

- speak to a large number of consumers to identify trends - usually collected using questionnaires/ surveys - usually presented in the form of numbers/ statistics/ facts - used to make comparisons between products/years/branches of stores * Normally numerically based, very easily compared*

Question 36

What is Qualitative Research?

Answer 36

- speak to much smaller group of consumers, one to one discussion - usually collected through focus groups or in consumers homes - gives in depth information about consumer * Normally expressed in words not easily compared includes descriptive opinions*

Question 37

Why do market research?

Answer 37

to reduce risk when launching products

Question 38

Three examples of methods of field research?

Answer 38

Hall tests online survey personal interview

Question 39

Advantages of these methods of field research?

Answer 39

Hall test - Fairly cheap method to gain customers opinions, often used in supermarkets Online Survey - A large number of people can be surveyed, people from all around the world can participate Personal Interview - Allows two way communication. the interviewer can encourage answers.

Question 40

Disadvantages of these methods of field research?

Answer 40

Hall test - Can be difficult to analyse qualitative information Online survey - No personal contact, response rate may be low Personal Interviewer - Can be an expensive method, training and paying interviewers

Question 41

Why is market research important?

Answer 41

- To find out the price consumers are willing to pay - To find out where consumers are likely to buy/purchase this product e.g. online - To identify if consumers would like existing p/s changed - To identify if p/s currently offered buy any competitors - To find out if consumers like the p/s and if they would buy it. (reduce risk)

Question 42

Why is customer satisfaction important?

Answer 42

- To encourage customers to return (Customer loyalty) - To maintain/ increase in sales (sales maximisation) - To maximise profits - To establish and maintain a good reputation To attract new customers (improve market share)

Question 43

What are advantages of 2 advertising methods of promotion?

Answer 43

T.V. - adverts can be targeted to a particular audience, large audiences can be reached Internet - Changes can be made easily to adverts

Question 44

What are disadvantages of 2 advertising methods of promotion?

Answer 44

T.V. - Many viewers switch channels when adverts come on | Internet - Many people ignore adverts on the internet

Question 45

Give 3 examples of electronic promotion?

Answer 45

Loyalty cards e.g. Tesco clubcard - card is used to record spending habits and consumers are then targeted based on previous spending patterns. points can be earned for money off/free gifts. QR Codes - smart phones can scan the code using an app which directs consumers to a business website Apps - downloaded to mobile devices widely used to advertise and promote businesses, easily accessible

Question 46

What is e-commerce?

Answer 46

The process of buying and selling products or services online. E.g customers can buy clothes, food, books and customers can sell goods on gumtree, ebay

Question 47

What are 3 advantages of e-commerce for CUSTOMERS?

Answer 47

- Goods are available to order 24hours a day - Can quickly find what you are looking for search facility on website - Stock availability can be checked instantly

Question 48

What are 3 DISadvantages of e-commerce for CUSTOMERS?

Answer 48

- Might have extra charges e.g. delivery, insurance - Goods can't be seen or handled or tried on before buying (inconvenient if goods need to be returned) - Technical Problems might occur sometimes customer left wondering if their order has been placed

Question 49

What are 3 advantages of e-commerce for ORGANISATION?

Answer 49

- Customers worldwide can be targeted - Cheaper than traditional e.g. property and staff costs are reduced - Instantly update product info on a website e.g. latest price (no printing costs and is more environmentally

Question 50

What are 3 DISadvantages of e-commerce for ORGANISATION?

Answer 50

- Website has to be maintained regularly (will need significant amount of the time dedicated and may need to train employees - Site must be secure, Customers will have to enter personal details - Some goods are difficult to sell online e.g. where customers like to see, touch or try before buying

Question 51

Why should company's have their own websites?

Answer 51

- A business can advertise and provide info on its product/services to (potential) customers: the most up-to-date info can be provided easily, compared to paper based method such as catalogue it's easier, quicker and cheaper to update info. - A business has access to a world wide market and it's open 24 hours a day 7 days a week. This is also useful when your business affected by time zones: the web is very convenient for everyone - A business can sell goods even when there is no-one there through the use of e-commerce allows people to buy and sell online you are not restricted by geographical location - A business will save money on traditional trading costs, a shop requires rent, heating, lighting, staff etc all of which can be very expensive