Marketing

Question 1

Market

Answer 1

A set of arrangements which allows buyers and sellers to communicate and trade in goods and services

Question 2

Market share

Answer 2

The proportion of sales in a total market that a business or product enjoys

Question 3

Marketing

Answer 3

Identifying customer needs and satisfying them profitably

Question 4

Marketing Mix

Answer 4

The key elements in a firm’s marketing strategy

Commonly known as the 4 P’s - Product, Price, Promotion and Place

Question 5

Market orientation

Answer 5

Where a business focuses on the needs of customers when developing products

Question 6

Marketing strategies

Answer 6

A set of plans designed to achieve marketing objectives

Question 7

Product orientation

Answer 7

Where a business focuses on the design and manufacture of the the product itself rather than the needs of customers

Question 8

Market segment

Answer 8

Part of a whole market where a particular customer group has similar characteristics

Question 9

Socio-economic groups

Answer 9

Division of people according to social class based on employment status

Question 10

Competition based pricing

Answer 10

Pricing strategies based on the prices charged by rivals

Question 11

Cost plus or cost based pricing

Answer 11

Adding a percentage( the mark up) to the cost of producing a product to get the price

Question 12

Destroyer or predatory pricing

Answer 12

Setting a low price until rivals have gone out of business

Question 13

Loss leader

Answer 13

A product sold below cost to draw in customers

Question 14

Market orientated pricing

Answer 14

Pricing strategies based upon the conditions of the market

Question 15

Mark up

Answer 15

The percentage added to costs which makes a profit for a business when setting the price

Question 16

Price elasticity of demand

Answer 16

Measures the responsiveness of demand to a change in price

Question 17

Price elastic demand

Answer 17

Where a price change will result in a significant change in demand

Question 18

Price inelastic demand

Answer 18

Where a price change will result in a much smaller change in demand

Question 19

Price Skimming

Answer 19

Setting a high price initially and the lowering it later

Question 20

Above the line promotion

Answer 20

Placing adverts using the media

Question 21

Advertising

Answer 21

Communication between a business and it’s customers where messages are placed in the media to encourage the purchase of products

Question 22

Below the line promotion

Answer 22

Any promotion that does not involve using the media

Question 23

Sponsorship

Answer 23

Making a financial contribution to an event in return for publicity

Question 24

Agent or broker

Answer 24

An intermediary that brings together buyers and sellers

Question 25

Direct selling

Answer 25

Where businesses sell their products directly to consumers

Question 26

Distribution channel

Answer 26

The route taken by a product from the producer to the costumer

Question 27

Retailer

Answer 27

A business which buys goods from manufacturers and wholesalers and sells them in small quantities to consumers

Question 28

Wholesaler

Answer 28

A business which buys goods from manufacturares and sells them in smaller quantities to retailers

Question 29

Boston Matrix

Answer 29

A 2 x 2 matrix which describes products according to the market share they enjoy and whether the market has any potential for growth

Question 30

Brand names

Answer 30

The name of a product which consumers see as being from those of rivals

Question 31

Extension strategies

Answer 31

Methods used to prolong the life of a product

Question 32

Product life cycle

Answer 32

The level of sales at the different stages through which a product passes over time

Question 33

Consumer panels

Answer 33

Groups of customers are asked for feedback about products over a set period

Question 34

Market research

Answer 34

The collection, presentation and analysis of information relating to marketing and consumption of goods and services

Question 35

Primary or field research

Answer 35

The gathering of new information that does not already exist

Question 36

Sample

Answer 36

A small group of people which must represent a proportion of a total market when carrying out market research

Question 37

Secondary or desk research

Answer 37

The collection of data that is already in existence.