Marketing

Question 1

Name the sections of the product life cycle

Answer 1

Introduction
Growth
Maturity
Decline

Question 2

Give 3 extension strategies

Answer 2

Celebrity endorsement
Change packaging
New flavours/variations
Advertising
New markets

Question 3

Why do businesses make market maps?

Answer 3

To find an opportunity to enter a certain market

Question 4

What are the normal labels for a market map?

Answer 4

Quality and price

Question 5

What is qualitative data

Answer 5

Based on people’s opinions

Question 6

Quantitative data

Answer 6

Facts and numbers, can be measured

Question 7

What is the marketing mix?

Answer 7

Price
Product
Place
Promotion

Question 8

What is the difference between advertising and promotion?

Answer 8

Advertising is to tell customers that a product exists, promotion is to increase sales.

Question 9

What is primary research?

Answer 9

Data collected by the individual

Question 10

What is secondary research?

Answer 10

Research collected by others

Question 11

What pricing strategies are often used with products in the introduction phase?

Answer 11

Penetration and skimming

Question 12

What is penetration?

Answer 12

Where a business sets their price low to guarantee early sales

Question 13

What is skimming?

Answer 13

Where a business sets their price high at first and slowly lowers it

Question 14

What is cost-plus pricing?

Answer 14

Where a business add a profit margin to the costs

Question 15

What do you spend less on as you move up the life cycle?

Answer 15

Promotion

Question 16

What is market segmentation?

Answer 16

Dividing people into sub-groups with similar qualities

Question 17

What is marketing?

Answer 17

A business promoting and selling its products

Question 18

What does USP mean?

Answer 18

Unique selling point

Question 19

What are advantages of online marketing?

Answer 19

Saves printing costs
Can be seen by anyone
Adverts are chosen for your tastes

Question 20

What are disadvantages of online marketing?

Answer 20

Adverts can be skipped/deleted
Can be expensive on big websites
You have little time or space

Question 21

Advantages of printed marketing

Answer 21

Can be controlled
Pick a target market more specifically
People can’t delete or skip it

Question 22

Disadvantages of printed marketing

Answer 22

Expensive to print
Can need distributing
Could be expensive

Question 23

Job description

Answer 23

Explain the work to be done and typically set out the job title, location of work and main tasks of the employees

Question 23

Person specification

Answer 23

List individual qualities of the person required e.g. qualifications, experience and skills

Question 24

Methods to assess and select applicants

Answer 24

Application forms, CVS, references, interviews, presentations, role-play and tests

Question 25

Methods of collecting primary research

Answer 25

``` Interview (face-to-face or telephone) Survey (postal or online) Focus group Test Observatiom ```

Question 26

Advantages and disadvantages of primary research

Answer 26

+Only firm that has access to it +collected for their purpose -expensive to collect -time consuming

Question 27

Methods of collecting secondary research

Answer 27

``` Sales figures Newspapers Websites Government publications Commercial publications ```

Question 28

Secondary research advantages and disadvantages

Answer 28

``` +saves time +relatively inexpensive +widely available -not gathered for the business -may be out of date -may contain bias ```

Question 29

What sellers decrease profit on each product?

Answer 29

Wholesalers | Retailers

Question 30

Loss leader

Answer 30

Where they set costs below the unit cost

Question 31

Which pricing strategies do new businesses typically use?

Answer 31

Penetration | Skimming

Question 32

Product differentiation

Answer 32

Where they chose the function, appearance and cost to make it stand out most

Question 33

Premium brand vs budget brand

Answer 33

Premium brands are higher quality and more expensive Budget brands are lower quality and cheaper A business needs to decide which will make the most profit

Question 34

Boston Matrix

Answer 34

Categorises products based on market growth and market share

Question 35

Cash Cow

Answer 35

High market share | Low market growth

Question 36

Star

Answer 36

High market share | Fast growing market

Question 37

Question mark/ problem child

Answer 37

Low market share | Fast growing market

Question 38

Dog

Answer 38

Low market share | Slow growing market

Question 39

What is the purpose of marketing?

Answer 39

To increase sales by making a product that customers want and promoting it to them.

Question 40

What is a focus group?

Answer 40

Where a small group of people (5-12) sit and discuss something.

Question 41

What is market segmentation?

Answer 41

Splitting up the marker into groups of people with similar buying habits.

Question 42

Ways to segment a market

Answer 42

- location - age - gender - occupation - buying habits - personality

Question 43

Why would a business use price skimming?

Answer 43

Because people may be willing to spend a lot at first but after they wouldn't want to

Question 44

What is competitive pricing?

Answer 44

Where they set their price at a similar level to competitors

Question 45

Promotion

Answer 45

Making customers aware of a product

Question 46

Advertising

Answer 46

Trying to increase the sales of a product

Question 47

What is market share?

Answer 47

The percentage of sales in a market by one business.

Question 48

What is the design mix?

Answer 48

Function Cost Aesthetics

Question 49

Quantitative vs qualitative data

Answer 49

Quantitative is around numbers and facts, can be measured | Qualitative is about people's opinions

Question 50

Why would businesses use a loss leader?

Answer 50

Because if a customer buys one product for cheaper than they expected then they are likely to buy more products.