Marketing

Question 1

Marketing plan

Answer 1

Is a document that lists activities aimed at achieving particular marketing outcomes in relation to a good or service.

The plan provides a template for future action aimed at reaching marketing objectives, such as establishing a customer base.

Question 2

Market share

Answer 2

Refers to the business’s share of the total industry sales for a particular market.

Example: confectionary market (Cadbury Snack)

Question 3

Product life cycle

Answer 3

The product life cycle is the cycle which every product progresses through, from its introduction, growth, maturity, to its decline.

Question 4

Distinguish between objectives and strategies

Answer 4

An objective is a goal that outlines what an organisation expects to achieve over a particular period of time, whereas a strategy is a specific action that an organisation takes to achieve its stated objectives.

Question 5

Difference between export and diversification

Answer 5

Exports are goods or services sold by one country to individuals, businesses or governments in another country with the aim of extending sales and market penetration.

whereas diversification occurs when businesses vary their range of products or fields of operations, such as relaunching an existing product with new packaging and revamped advertising campaign.

Question 6

Brand

Answer 6

A brand is a distinguishing name, mark, logo or words, or a combination of these, that identifies a product or a manufacturer.

It’s a powerful business asset that is essentially a makers mark. It creates and brings with it awareness, desirability and power.

Question 7

Marketing mix (the four P’s)

Answer 7

Elements are product, price, place and Promotion.

Question 8

Marketing mix- product

Answer 8

Product: is a good or service that can be offered in an exchange for the purpose of satisfying a need or want.

-One product strategy could be product positioning where a product is differentiated from that of its competitors.

Question 9

Marketing mix- Price

Answer 9

Price: can be extremely influential in determining the level of sales of a good or service. Factor effecting the price include the customer demand for the product. A price too high can result in lost sales unless superior benefits are offered, while a price too low can lead customers to believe the product is of low quality.

Question 10

Marketing mix- place

Answer 10

This refers to where the product will be sold.

Question 11

Marketing mix- promotion

Answer 11

Promotion refers to the methods used by a business to inform, persuade and remind a target market about its products.

A strategy could be to develop an advertising campaign that focuses on safety and quality, and that the product is produced in an pollution-free environment.

Question 12

Marketing concept

Answer 12

Is that a customers needs and wants are met while achieving the business’s objectives.

Question 13

Target market

Answer 13

Is a group of customers with similar characteristics who currently purchase the product or may do so in the future.

Question 14

Factors influencing consumer behaviour

Answer 14

Four main factors influence consumer purchasing decisions:

• psychological influences
• sociocultural influences
• economic influences
• government influences

Question 15

Psychological factors

Answer 15

Are influences within an individual that affect his/her buying behaviour.

Psychological factors influence customer choice are:

• attitude. Customer attitude towards a business and its products generally influences the success or failure of the business marketing strategy.
• personality. To some extent, personality influences the types and brands of product that a person buys.
• perception. Marketers are extremely aware that they must create a positive or favourable perception of their product in the mind of the customer. Customers won’t purchase a product that they perceive as poor.

Question 16

What is Marketing

Answer 16

Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.

Marketing is vital to the existence of a business. Without some form of marketing, customers may not be aware of a products existence. Example is Coca Cola is most successfully marketed product.

Question 17

Sociocultural influences

Answer 17

Sociocultural influences are forces exerted by other people that affect customer behaviour.

• peer groups. A customers behaviour may change to be more in line with that persons peer group beliefs and attitudes.
• culture and subculture. Culture influences buying behaviour because it infiltrates all that we do in our everyday life.

Question 18

Economic influences

Answer 18

Economic forces have a enormous impact on customers willingness to spend because they feel secure about their jobs and source of income. During a recession, consumer spending falls to a very low level.

Question 19

Government influences

Answer 19

Government uses a number of economic policy measures to influence the level of economic activity. These policies directly or indirectly influence consumers habits.