Marketing Strategies

Question 1

Ansoff’s Matrix

Answer 1

A strategic model for helping a business analyse the relationship between general strategic direction and suitable marketing strategies

Question 2

Average

Answer 2

A term for various measures of central tendency, including the mean, mode and median

Question 3

Competitive advantage

Answer 3

Skills, competences, resources and other advantages that enable a business to out-perform its competition

Question 4

Correlation

Answer 4

A measure of how close the relationship it (positive or negative) between an independent variable and a dependent variable

Question 5

Customer relationship management (CRM)

Answer 5

The process of building a long-term, profitable relationship between a business and its customers

Question 6

Diversification

Answer 6

The relatively risky strategy of trying to enter new markets with new products (from Ansoff matrix)

Question 7

Extrapolation

Answer 7

The use of trends established by historical data to make predictions about future values

Question 8

Growth rate

Answer 8

The percentage growth over a particular period. Market growth rates are typically quoted in terms of percentage growth per year

Question 9

Market analysis

Answer 9

The process of analysing the size, structure and growth of a market in order to support marketing decisions

Question 10

Market development

Answer 10

A growth strategy where the business seeks to sell its existing products into new markets - e.g. exporting (from Ansoff matrix)

Question 11

Market penetration

Answer 11

A relatively low-risk growth strategy where a business focuses on selling existing products into existing markets (from Ansoff matrix)

Question 12

Market share

Answer 12

The proportion of a market revenue or sales volume that is captured by a business or brand

Question 13

Marketing budget

Answer 13

Specific amounts that are allocated to activities in the marketing plan

Question 14

Marketing plan

Answer 14

The actions that management intend to take via the marketing mix in order to achieve marketing objectives

Question 15

Moving average

Answer 15

A calculation that takes a data series and “smoothes” the fluctuations in data to show a trend average

Question 16

Product development

Answer 16

A growth strategy where a business aims to introduce new products into existing markets (from Ansoff matrix)

Question 17

Product positioning

Answer 17

The way in which the marketing function tries to create an image or identity in the minds of the target market

Question 18

Repositioning

Answer 18

Changing the marketing mix for a product to appeal to a different market segment

Question 19

Sales forecasting

Answer 19

Techniques for estimating the likely demand (revenue and volume) for a product in future periods

Question 20

Target market

Answer 20

The market segment or segments which a business is attempting to enter with the chosen marketing mix

Question 21

Test marketing

Answer 21

Launching a new product or service in a limited part of the target market in order to gauge the viability of the product and assess the most appropriate marketing mix

Question 22

Trend

Answer 22

A general direction in which something tends to move