Marketing

Question 1

Advantage of a niche market

Disadvantage of a niche market

Answer 1

less competition/small scale production/higher market share

less profits/changes in demand

Question 2

Advantage of a mass market

Disadvantage of a mass market

Answer 2

higher revenue/more brand awareness

more competition/smaller market share

Question 3

What is product differentiation?

Answer 3

the way a business makes its brand different from its competitors; usually with a USP.

Question 4

Name the stages in a new product deveopment

Answer 4

1) Generation of idea
2) Analysis of ideas
3) Product development
4) Test marketing
5) Launch of new product

Question 5

What is the marketing mix?

Answer 5

the 4 P's 
product
price
promotion
place

Question 6

Name the stages of the Boston matrix and what market share and market growth it has

Answer 6

Stars; High growth & High market share
Cash Cow; Low growth & High market share
Problem Child; High growth & Low market share
Dogs; Low growth & Low market share

Question 7

Name the stages of a product life cycle

Answer 7

1) Development
2) introduction
3) Growth
4) Maturity (extension - to extend a products life)
5) Decline

Question 8

Name 3 methods of advertising

Answer 8

television/radio/cinema/national or regional newspapers/magazines/internet/posters

Question 9

List pricing strategies

Answer 9

price skimming/penetration pricing/price leader/predator or destroyer pricing

Question 10

Which pricing strategy is this;

large company sets a low price that smaller firms follow

Answer 10

price leader

Question 11

Which pricing strategy is this;

company sets a high price to gain high profits

Answer 11

price skimming

Question 12

Which pricing strategy is this;

a company sets low prices to break into the market

Answer 12

penetration pricing

Question 13

Which pricing strategy is this;

a company sets a really low price to get rid of rivals within the market

Answer 13

predator or destroyer pricing

Question 14

Name 3 pricing strategies

Answer 14

loss leader/psychology pricing/price discrimination

Question 15

Expand on either on of the pricing strategies

Answer 15

loss leader;
set a products price particulary low to encourage customers to buy dearer, complimentary products
psychology pricing;
giving a product the price of £9.99 instead of £10 to give the impression of value
price discrimination;
charging a higher price to some customers for the same product or service

Question 16

List the aims of production

Answer 16

attention/interest/desire/action

Question 17

List 3 promotional methods

Answer 17

PR/branding/merchandise/sales promotion/direct selling/advertising

Question 18

What is EPOS?

Answer 18

when an item is scanned and stock levels are automatically adjusted and when stock reaches a certain level a message is then sent to the supplier

Question 19

What is a core product?

Answer 19

when a company concentrates on producing 1 or 2 products and mass producing and selling them

Question 20

What is product proliferation?

Answer 20

when a company has a verity of different products available

Question 21

Name the different market structures

Answer 21

monopoly/oligopoly/monopolistic/perfect competition

Question 22

Which market structure is this;

3 - 4 medium sized businesses with 75% market share between them

Answer 22

oligopoly

Question 23

Which market structure is this;

lots of small businesses with control over their product prices

Answer 23

perfect competition

Question 24

Which market structure is this;

1 single producer with 25% market share

Answer 24

monoploy

Question 25

Which market structure is this;

lots of small businesses with control no over their product prices

Answer 25

monopolistic

Question 26

How would you improve your business to become more competitive?

Answer 26

1) improve quality
2) reduce waste
3) improve efficiency

Question 27

List 3 reasons why location of a business is important

Answer 27

1) convenience
2) cost of access
3) accessibiliy

Question 28

What is the formula for a change in price elasticity of demand?

Answer 28

% change in quantity demanded
——————————————————–
% change in price

Question 29

What is cartel?

Answer 29

a group of firms that agree to a price and output levels in an industry

Question 30

What are porters 5 forces?

Answer 30

intensity of competitive rivalry
>power of suppliers
>power of buyers
>threat of entry by new competitors
>threat from substitute products or services