Marketing

Question 1

calculate market share

Answer 1

(sales value for individual business/sales value for whole market) x 100

Question 2

calculate market growth

Answer 2

( increase or decrease in total sales value/original sales value ) x 100

Question 3

define market segmentation

Answer 3

process where the market is split into different groups with different characteristics and needs

Question 4

give 5 factors a business might segment into

Answer 4

age, gender, family structure, income, media they see, amount they buy, location, religion

Question 5

list 3 limitations of market segmentation

Answer 5

lack of info and data in poorly researched markets
difficulty in predicting and measuring customer behaviour
hard to reach customer segments

Question 6

define market research

Answer 6

process of discovering customers needs and wants through the collection and analysis of data about a particular target market

Question 7

what is quantitative data

Answer 7

numerical data

objective

Question 8

what is qualitative data

Answer 8

opinions

subjective

Question 9

what is the difference between primary and secondary data?

Answer 9

pri - new data

secon - existing data

Question 10

give 2 examples of primary data

Answer 10

focus groups, interviews, surveys, observation

Question 11

give 2 examples of secondary data

Answer 11

sales figures, previous survey results, market research companies, trade publication

Question 12

What is the SWOT analysis

Answer 12

a tool to help a business consider its competitive situation and decide on a strategy for the future

Question 13

what are the 4 sections on a SWOT?

Answer 13

strengths, weaknesses, opportunity and threats

Question 14

define each section of the SWOT

Answer 14

strength - areas you do well in and give you an advantage
weakness- areas to be improved
threats - potential problems caused externally
opportunity - external factors that may help you

Question 15

which areas of SWOT are internal and which are external?

Answer 15

threats and opps = external

weakness and strength = internal

Question 16

give 2 + and 2 - of SWOT

Answer 16

+ logical structure
+ encourages analysis of external environment
- too often lacks focus
- can quickly become out of date

Question 17

what are the marketing resources?

Answer 17

a team
budget
knowledge of market
set of objectives
time

Question 18

What are the sampling methods?

Answer 18

simple random
cluster
systematic
quota
convenience
stratified

Question 19

What is simple random sampling?

Answer 19

individuals randomly selected

uses a randomiser

Question 20

What is cluster sampling?

Answer 20

people are found in natural groups

all units in cluster examined

Question 21

What is systematic sampling?

Answer 21

every nth element from list is selected from a random starting point

Question 22

What is quota sampling?

Answer 22

obtains a sample representative of whole population

splits into sub groups according to their distribution in population

Question 23

What is convinience sampling?

Answer 23

using people within the population who come to hand most easily

Question 24

What is stratified sampling?

Answer 24

each distinct group is represented, random sample of each group is taken in proportion with the group representation

Question 25

What is planned purchase?

Answer 25

purchase that has been considered and pre thought about

Question 26

What is impulse purchase?

Answer 26

purchases made without any prior thought or consideration

Question 27

what is customer orientation?

Answer 27

gets the right product

Question 28

what is product orientation?

Answer 28

gets the product right

Question 29

Distinguish between customers and consumers.

Answer 29

customer - buys the product | consumer - uses the product

Question 30

name each stage in the product life cycle.

Answer 30

introduction growth maturity decline

Question 31

what is meant by marketing mix?

Answer 31

tactics and actions a business may use to promote its products

Question 32

Describe the Boston Matrix

Answer 32

``` top left: star top right: question marks/problem child bottom left: cash cow bottom right: dog left side axis : market growth top side axis: market share ```

Question 33

What is meant by DOG, CASH COW, STAR and ?? on the boston martrix?

Answer 33

DOG - no real future, unless vital to range it should be dropped CASH COW - high revenues, mature, doesnt need lots of marketing, large profits gained STAR - high market share, still needs investment to become cash cow ??? - aims to become cash cow/star but needs lots of investment

Question 34

What is meant by price?

Answer 34

value set on a product

Question 35

Name some pricing strategies

Answer 35

``` skimming penetration competitive psychological cost-plus marginal contribution predatory premium ```

Question 36

Explain what price skimming is

Answer 36

high prices initially then drop

Question 37

penetration pricing

Answer 37

steal customers with low prices then up again

Question 38

competitive pricing

Answer 38

getting best price for product

Question 39

psychological pricing

Answer 39

convincing people that products are cheaper

Question 40

cost-plus pricing

Answer 40

variable cost + money for profit

Question 41

contribution pricing

Answer 41

variable cost + profit

Question 42

predatory pricing

Answer 42

using current cash to lower prices and 'kill off competition'

Question 43

premium pricing

Answer 43

customers demand to be charged more for exclusivity

Question 44

What is elasticity of demand?

Answer 44

change in demand due to a change in price or income

Question 45

Price elasticity of demand?

Answer 45

% change in demand / % change in price

Question 46

Income elasticity of demand?

Answer 46

% change in demand / % change in income

Question 47

Cross elasticity of demand?

Answer 47

% change in demand of A / % change in demand for B

Question 48

What is above the line and below the line promotion

Answer 48

above the line - indirect contact | below the line - direct contact