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.
Formula: Total product or business sales / total sales in the whole market

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 4Ps - product, price, promotion and place.

Question 5

Market orientation

Answer 5

where a business focuses on the needs of consumers when developing products.

Question 6

Marketing strategies

Answer 6

A set of plans designed to achieve marketing objectives. For example, raise the price.

Question 7

Product orientation

Answer 7

Where a business focuses on the design and manufacture of 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. E.g. age groups.

Question 9

Socio-economic groups

Answer 9

Division of people according to social class based on employment status. high social classes always have more incomes to consume.

Question 10

Pricing strategies based on the prices charged by rivals.

Answer 10

Competition-based pricing

Question 11

Cost plus

Answer 11

Adding a percentage to the costs of producing a product to get the price.

Question 12

Destroyer(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

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

Answer 14

Mark-up

Question 15

Penetration pricing

Answer 15

Setting a low price to start with in order to get established in the market. Price may be raised once established.

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.
E.g. fuels.

Question 19

Skimming(creaming)

Answer 19

Setting a high price initially and then lowering it later.

Question 20

Boston matrix

Answer 20

A 2x2 matrix which describes products according to the market share they enjoy and whether the market has any potential for growth.
E.g. A star product

Question 21

Brand names

Answer 21

The name of a product which consumes see as being different from those of rivals. A well known brand brings more customers.

Question 22

Extension strategies

Answer 22

Methods used to prolong the life of a product, such as giving a product new packaging.

Question 23

Product life cycle

Answer 23

The level of sales at the different stages through which a product passes over time. During maturity businesses made the most profits.

Question 24

Consumer panels

Answer 24

Groups of customers are asked for feedback about products over a set period. The group must be representative of the whole population and be prepared to answer detailed questions.

Question 25

What is the other name for customer panels?

Answer 25

Focus groups.

Question 26

Primary research(field research)

Answer 26

The gathering of new information which does no already exist. For instance, questionnaires.

Question 27

Secondary research(desk research)

Answer 27

The collection of data they is already in existence. Like online researching.