Marketing

Question 1

What are the 7 P’s

Answer 1

People
Promotion
Physical evidence 
Place 
Price
Product
Process

Question 2

What is a market

Answer 2

A market for a good or service exists when consumers and sellers are in contact with each other and are able to buy and sell it.

Question 3

What are the different types of markets

Answer 3

Direct markets: consumers and sellers are in deal with one another
Indirect markets: buyers and sellers are not in direct contact.
Local - Involves consumers and sellers in a small area immediately around a business.
National - Involves consumers and sellers within a country.
Global - Involves buyers and sellers all around the world.

Question 4

What is the contents of the Boston matrix

Answer 4

Star - high market growth, high market share
Dog - low market growth, high market share
Problem child - high market growth, low market share
Cash cow - low market growth, high market share

Question 5

What is the role of marketing

Answer 5

Identifying customer wants and needs
Anticipating customer needs and wants
Satisfying customer needs and wants

Question 6

Channels of distribution

Answer 6

Direct Selling - Direct mail, personal selling, mail order, telephone selling
Retailers - Supermarkets, department store, chain store
Wholesalers

Question 7

Factors affecting choice of distribution channel

Answer 7

The product
Finance available 
Legal restrictions 
Reliability of wholesalers and retailers 
Stage in the product life cycle 
Image of the product

Question 8

Above the line promotion

Answer 8

Use of mass media - TV, radios, National newspaper

Targets everyone, no specific market segment

Question 9

Below the line

Answer 9

Direct selling, niche magazines, packaging, telemarketing

Specific segments of the market are targeted through targeted promotion

Question 10

Describe a personal interview

Answer 10

When an interviewer conducts a face to face meeting with a consumer using a questionnaire.

Question 11

Describe a telephone survey

Answer 11

When people are contacted by telephone and asked to answer a series of questions

Question 12

Describe an online survey

Answer 12

A website that is used to ask questions and people simply access the website and answer them

Question 13

Describe a postal survey

Answer 13

A survey that is sent through the post, participants complete it in their own time and send it back

Question 14

Describe a hall test

Answer 14

When customers are invited to a venue to test products and services and give their opinion

Question 15

What is a product led product

Answer 15

A product that is produced because an organisation thinks they’re good at providing it.
They have little or no competition

Question 16

What is a market led product

Answer 16

A market led product is produced based on what the customer wants before the product is made
They have a competitive market

Question 17

What are the stages of a product life cycle

Answer 17

1. Research and development
2. Introduction
3. Growth
4. Maturity
5. Saturation
6. Decline

Question 18

Explain the use of extension strategies to prolong the life of a product

Answer 18

• Changing the packaging
• Making new improved versions
• Changing the colour, size etc
• Alter the price to target different socioeconomic groups
• Use different promotional activities

Question 19

What does the term branding mean

Answer 19

A method of attaching a persona to a product based on an established make

Question 20

Advantages of own branding

Answer 20

• They are of a lower price, making it affordable for a larger amount of people
• Don’t have to pay high costs for marketing, packaging or promotional activities as the supermarket does that

Question 21

Disadvantages of own branding

Answer 21

• They are perceived as lower quality

- People want to stay loyal to brands and won’t buy the product

Question 22

Describe promotional pricing

Answer 22

Prices reduced for a short period of time. Used to boost sales in short term

Question 23

Describe cost plus pricing

Answer 23

The cost of making the product is calculated before a % is added on for profit - ensures that the cost of making the product is covered and that a profit is also made

Question 24

Describe market skimming

Answer 24

A high price is charged for a new and often unique product. Often little or no competition. The price might be decreased once competition arrives.
High process can be charged because little or no competition exists, making a high profit

Question 25

Explain into the pipeline promotions

Answer 25

Promotions offered to retailers or wholesalers to entice them to stock the products Point of sale materials - posters, window displays, leaflets. Free of charge Dealer loaders - purchase 10 get 1 free - example Sale or return - retailer will be able to stock the product without fear that they will be left with unsold stock Dealer competitions - competitions for high sales can be offered to retailers or wholesalers

Question 26

Explain out of the pipeline promotions

Answer 26

Promotions offer d to the customer to entice them to make a purchase Free samples Credit facilities - purchase items on credit that they wouldn't be able to afford and pay at a later date Demonstrations - involves demonstrating to entice the purchase Competitions - purchase a product to allow them to enter a competition. BOGOF

Question 27

Advantages of E-commerce

Answer 27

1. Much cheaper and quicker to set up 2. Helps create new relationship opportunities with potential customers, suppliers and partners 3. Allows easier delivery of info + support 4. Accessible wherever there is online access

Question 28

Disadvantages of E-commerce

Answer 28

1. It can be expensive and time consuming to have the entire range available online 2. Vital to have strong security procedures to allow customers to buy in confidence 3. Products cannot be seen or touched before purchase which can put customers off 4. Customers have to wait for delivery and organisation has to rely on quality of delivery service provided by a third party

Question 29

What is a loss leader

Answer 29

When an owner lowers the prices in the shop to entice the customer to come in and buy the products

Question 30

Advantages of a diversified portfolio

Answer 30

1. To reduce risk of failure of one product, as one product might be doing better then the other 2. To appeal to a variety of market segments,maps different products will appeal to different customers 3. To increase sales and profits from selling different products, as customers will be able to buy a variety of products sold by the same business

Question 31

Disadvantages of a diversified portfolio

Answer 31

1. Costs of maintaining machinery for different types of products might be high 2. Staff may require training - expensive + time consuming 3. High cost of research and development

Question 32

Advantages of a product portfolio

Answer 32

1. Wide range of products can allow business to meet needs and varieties of customers 2. Increase profits and profit levels remain steady 3. Raise profile of business

Question 33

Disadvantages of a product portfolio

Answer 33

1. Products can be spread to wide | 2. Business can lose focus on its key objectives

Question 34

Advantages of Quota sampling

Answer 34

1. Cheaper to operate than random sampling 2. Statistics showing proportions of groups within population readily available 3. Interviewers can substitute someone else if interviewee is not at home at time of visit or phone call

Question 35

Disadvantages of Quota sampling

Answer 35

1. Results can be less representative than using random sampling

Question 36

Advantages of desk research

Answer 36

1. Secondary information has been collected | 2. Wide range of information is available

Question 37

Disadvantages of desk research

Answer 37

1. Uses information that is available for everyone - competition 2. Info could be out of date 3. Not collected info itself so it is questionable wether it is accurate or not

Question 38

Customers buying behaviour

Answer 38

Impulse purchases Routine purchases Limited decision making purchases Extensive decision making purchases

Question 39

What is market share

Answer 39

% of all the sales in the market a business has

Question 40

What is market growth

Answer 40

Total increase in sales of a market