Marketing

Question 1

List 2 examples of target markets

Answer 1

• Age
• Gender
• Area
• Ethnicity
• Religion
• Hobbies and interests

Question 2

Name the 4P’s in the marketing mix

Answer 2

• Product
• Price
• Promotion
• Place

Question 3

List all the stages of the product life cycle

Answer 3

1. Development
2. Introduction
3. Growth
4. Maturity
5. Saturation
6. Decline

Question 4

What are examples of extension strategies

Answer 4

• Changing the product
• Changing the packaging
• Lowering the price
• New advertising campaigns

Question 5

What is cost based pricing

Answer 5

Adding a percentage profit margin to the cost of supplying a good or service

Question 6

What is competition based pricing

Answer 6

Setting a price based on the prices charged by competitors for similar products

Question 7

What is penetration pricing

Answer 7

Setting a low price for a new business or product in order to attract customers

Question 8

What is skimming

Answer 8

Selling a product at a high price because there is no competition. It’s often used for new innovations and the price comes down once competitors have made similar products

Question 9

What is price discrimination

Answer 9

Charging different prices for the same product to different groups of consumers

Question 10

What is loss leader pricing

Answer 10

A product that is sold at a loss in order to attract customers to buy other products being sold at their full prices

Question 11

What is psychological pricing

Answer 11

Charging just below a significant figure to make the price more attractive (e.g. £9.99)

Question 12

What are different types of advertising

Answer 12

• TV
• Radio
• National Newspapers
• Local Newspapers
• Leaflets
• Billboards

Question 13

What are different types of promotional methods

Answer 13

• Special offers
• BOGOF
• Competitions
• Loyalty cards
• Sponsorship

Question 14

What is a wholesaler

Answer 14

A business that buys products in large quantities from manufacturers and sells in smaller quantities to retailers

Question 15

What is a retailer

Answer 15

A business that sells the products to the consumers

Question 16

What are channels of distribution

Answer 16

The stages of ownership that take place as a product moves from the manufacturer to the consumer

Question 17

What is E-commerce

Answer 17

Buying or selling products online

Question 18

What does consumer protection mean

Answer 18

The laws and codes of conduct that exist to protect consumers when buying goods and services

Question 19

List 2 examples of consumer protection laws

Answer 19

• Poor quality
• Wrongly described
• Incorrectly weighed or measured
• Advertised in a misleading manner

Question 20

What is the supply of goods and services act

Answer 20

Goods and services sold to consumers must be:
• “as described” by the business
• “fit for purpose”
• “ of satisfactory quality

Question 21

What is the trade descriptions act

Answer 21

It is an offence for a business to make false or misleading statements about goods or services.

Question 22

What is the consumer protection act

Answer 22

Compensation must be paid to a consumer who suffers injury or damage to property when correctly using the good

Question 23

What is the consumer contracts regulations

Answer 23

This protects consumers who buy products using the internet, TV, telephone or mail order

Question 24

What is the ASA (Advertising standards authority)

Answer 24

• The ASA regulates the content of advertisements in the UK.

* It investigates complaints and decides whether advertising is “legal, decent, honest and truthful”