Marketing

Question 1

What are the two types of goods?

Answer 1

Durable goods and Non durable goods

Question 2

What is marketing?

Answer 2

Identifying and satisfying customer needs

Question 3

What are the two methods for collecting information?

Answer 3

Primary data and Secondary data

Question 4

Give two examples of primary data collection

Answer 4

Questionnaire/ Survey/ Consumer trials/ Focus group

Question 5

Give two examples of secondary data collection

Answer 5

Articles/ Internet/ Newspaper/ Old reports

Question 6

What is quantitative information?

Answer 6

Factual information that can be recorded as a number

Question 7

What is qualitative information?

Answer 7

Opinion based information

Question 8

What is a market segment?

Answer 8

A group of consumers with similar buying habits

Question 9

What is a market gap?

Answer 9

A part of a market where there are no/limited range of products to satisfy this customer need

Question 10

What tool can be used to find a market gap?

Answer 10

Market map

Question 11

What is a monopoly?

Answer 11

A business that owns at least a 25% market share

Question 12

What three factors can be improved by a competitive market?

Answer 12

Price/ Product range/ Customer Service

Question 13

What are the 4 P’s?

Answer 13

Price, Product, Place, Promotion

Question 14

Why do companies change the 4 P’s

Answer 14

To create an overall brand image and a unique selling point

Question 15

What are the three consumer protections you must know?

Answer 15

Sale and supply of Goods act, Trade descriptions act, Consumer Credit act

Question 16

What does the Sale and Supply of Goods act protect consumers against

Answer 16

Products must be of satisfactory quality

Question 17

What does the Trade descriptions act protect against

Answer 17

False or misleading information about a product

Question 18

What does the Consumer Credit act protect consumers against

Answer 18

Borrowing or buying credit

Question 19

What is a Product?

Answer 19

Good or service that is sold to either another business or customer

Question 20

What is a Product differentiation?

Answer 20

Altering a product so it stands out from the competition

Question 21

What are the 4 stages of the Product life cycle

Answer 21

Launch/Introduction, Growth/Development, Maturity, Decline/Extension

Question 22

What can stop a product declining

Answer 22

Extension strategy

Question 23

Give 3 examples of extension strategies

Answer 23

Update packaging, Adding extra features, Lowering price

Question 24

What can be used to analyse a companies product portfolio

Answer 24

Boston Matrix

Question 25

What are the four parts of the Boston Matrix

Answer 25

Star, Question Mark, Cash Cow, Dog

Question 26

What three factors affect the price of a product

Answer 26

Customers, competitors, Costs

Question 27

What are the five pricing strategies?

Answer 27

penetration pricing, price skimming, promotional pricing, destroyer pricing, demand orientated pricing

Question 28

What are the two pricing strategies for new products

Answer 28

penetration pricing, price skimming

Question 29

What is penetration pricing?

Answer 29

Keep price low until product becomes established

Question 30

What is price skimming

Answer 30

Start with a high price then gradually decrease over time

Question 31

What is promotional pricing

Answer 31

Have price low for a short spell then return to normal

Question 32

What is destroyer pricing

Answer 32

Keep price low to eliminate competitors then increase

Question 33

What is demand orientated pricing

Answer 33

Price is low when demand is low and price is high when demand is high

Question 34

What are the four places businesses can sell their products

Answer 34

Retailers, Wholesalers, Telesales, E-commerce

Question 35

Which two places result in a lower profit margin for the producer

Answer 35

Retailer and wholesaler

Question 36

What are the four forms of promotion

Answer 36

Personal selling, Advertising, Direct selling, Sales promotion