Marketing

Question 1

Define Marketing

Answer 1

Identifying and satisfying customer wants and needs in a profitable way

Question 2

3 aspects of customer needs

Answer 2

What they want
How much they are prepared to pay for
How do they want it

Question 3

4 roles of marketing

Answer 3

Identifying customer needs
Satisfying customer needs
Maintain customer loyalty
Anticipate change in the market

Question 4

7 ways that define a successful marketing department

Answer 4

Raise consumer awareness
Increase revenue/profitability
Increase/ maintain market share
Maintain or improve image of business
Target new market
Enter domestic and international markets
Develop and improve products

Question 5

4 stages of economic cycle

Answer 5

Peak, recession, trough, recovery…..

Question 6

What is growth, 4 ways

Answer 6

Business activity increase
sales and profit increase
consumer income and employment rate increase
Marketing increase

Question 7

What is peak, 4 ways

Answer 7

Demand, sales and profit peak
Unemloyment rate is low and wage increase
Business compete fiercely
Business look at strategies to maintain or entend peak

Question 8

What is recession, 4 ways

Answer 8

Slow down in business activity
Profit demand start to fall
Businesses stop investing and start cost cutting
Longer recession, more the depression

Question 9

What is recovery, 3 ways

Answer 9

Increase in sales and output
Business start to employ mre
increases budget for marketing

Question 10

4 changes marketing department need to anticipate

Answer 10

Consumer taste
Technology
Incomes
Demographics( population)

Question 11

3 ways markets become more competitive

Answer 11

Globalisation of markets
Transportation improvements
E-commerce

Question 12

4 ways businesses respond to changes in market

Answer 12

Maintain customer relationship
Keep improving products
Bring out new products
Keep costs low

Question 13

Mass marketing, 2 good pts and 1 bad

Answer 13

Large number of sales
Large in terms of profit growth and economies of scales
BUT, always competitive

Question 14

Niche marketing, 2 features

Answer 14

Specialised segment of a large market

Usually small businesses

Question 15

Niche marketing 1 good pt and 2 bad

Answer 15

Offer good personal service
BUT, if larger businesse enter to compete
OR, people’s taste change

Question 16

Define Market segmentation

Answer 16

Identifying different groups within a market and targeting different products/services to them

Question 17

Other name for market segmentation

Answer 17

differentiated marketing

Question 18

Geographic segmentation (2 features)

Answer 18

• Targeting products to different regions

- Identifying trends in region which may alter marketing strategy

Question 19

Demographic segmentation( 2 features)

Answer 19

• Based on characteristics such as age, gender, religion, education, family size, income etc.
• Research may suggest there’s a certain need for a product among demographic

Question 20

Psychographic Segementation( 2 features)

Answer 20

• Based on traits, beliefs, values, attitudes, interests, lifestyle
• Might be popular with Niche marketing

Question 21

4 advantages of market segmentation

Answer 21

• Save unnecessary cost for products that no one need
• Identify gaps in market
• Small business who can’t compete can specialise in 1 segment
• Price discrimination tactics can be used to maximise revenue

Question 22

5 disadvantages of market segmentation

Answer 22

• Expensive to produce specialised product
• Price to produce and store various products can be high
• Changes in segment alter purchasing habits
• Time and money is required on extensive marketing research
• High marketing price as various methods are adopted to different segments