Marketing Unit 1 test Part A

Question 1

What is Marketing ?

Answer 1

Marketing is the process of promoting, selling, and distributing a product or service to meet consumer needs and drive business growth

Question 2

What are the 4 Ps of Marketing?

Answer 2

Product, Price, Place, and Promotion

Question 3

What are the 2 C’s of a Marketing

Answer 3

Competition and Consumer

Question 4

What does Place mean in the 4 P’s

Answer 4

Ideal locations for your products or
services. Online as well

Question 5

What does Price Mean in the 4 P’s

Answer 5

With a full understanding of product price can be set. This will impact sales margins

Question 6

What does Consumer mean (2 C’s)

Answer 6

Person that uses product( Doesn’t mean they bought it eg; bought for them/gift)

Question 7

What does Promotion mean in the 4 P’s

Answer 7

Includes advertising, public
relations, social media
marketing, email marketing,
search engine marketing,
video marketing and more.

Question 8

What does Competition mean in the 2 C’s

Answer 8

In marketing, “competition” refers to the rivalry between businesses to attract customers and achieve market share.

Question 9

What does Product mean in the 4 P’s

Answer 9

Is a tanglible object or service that fufills customer/consumer needs

Question 10

Direct vs Indirect competition

Answer 10

DIRECT competiton:
- Products that are similar
- Consumers choose among products that are very similar
- Example: Coca-Cola and Pepsi
INDIRECT Competition:
- Every business is in some form a competitor
- Example: Coca-Cola and Milk

Question 11

Market research

Answer 11

Market research is a process where you study and analysis information to better interpret the market; including target audience, competitors, and industry trends

Question 12

Product development

Answer 12

The process of creating and developing a new product, involving stages like idea generation, design testing, testing, market introduction

Question 13

Inventory managment

Answer 13

Inventory management is the process of tracking and controlling stock levels to ensure efficient supply and meet customer demand while minimizing costs.

Question 14

Law of Demand

Answer 14

As price goes down, demand will go up.

As price goes up, demand will go down.

Question 15

Market equilibrium

Answer 15

Market equilibrium is a point the quantity demanded equals the quantity supplied, causing a stable market price

Question 16

Law of supply

Answer 16

As the price of an item goes up, supply of that item
will also go up.

As price of an item goes down, supply will also go
down.

Question 17

Factors that affect demand

Answer 17

Consumer’s income (i.e. More money=more spending)
Consumer’s taste (i.e. Fashion trends)
Future expectations (i.e. Housing market)
Population change (i.e. More seniors)

Question 18

Factors that affect supply

Answer 18

Change in # of producers (i.e. Every store sells milk=lots of
supply)

Price of related goods (i.e. Less SUV’s because gas is
expensive)

Technology (i.e. manufacturing machines)

Expectations of future conditions( i.e. Recession= less houses
being built)

Cost of production

Question 19

What is a customer

Answer 19

Someone that buys products, goods, service ( does not have to use them)

Question 20

What is target market

Answer 20

A target market is the consumer group to which a particular product is directed and marketed to.

Question 21

Types of markets

Answer 21

Aggregate market- Marketed to everybody

Differentiated Markets- Markets that are categorized a specific way ( Consumer income, education level, age, gender,)

Question 22

TQM (Total Quality Management)

Answer 22

Keeping up with quality demands and continuously trying to improve quality.

Question 23

What is market share

Answer 23

Market share is the portion of the markets that is controlled by a company or products

Question 24

What are the market segments

Answer 24

Geographic, Demographic, psychographic, Behavioural

Question 25

Explain the market segments

Answer 25

Geographical-Geographic area in which there is effective competition in the sale of products or services
Based on where the customers live
Climate of the area
Size of the target city

Behavioural-Based on the way customers use the product or act towards the product
What kind of features people like
Brand loyalty

Demographics-Statistics about the population, Age, Generations, Gender, Ethnicity, Income

Psychographic- Based on mental and emotional characteristics of costumers
Hobbies
Social Activities
Lifestyle
Interests

Question 26

Maslows Hierarchy of needs

Answer 26

(Bottom to Top)
physiological needs(food,water)
Safety needs(security)
Love and belonging(friendship,family)
Esteem(Respect/Self respect, strength)
Self-actualization( Trying to become the best one can be)

Question 27

What is a competitive advantage in business

Answer 27

factors that allow a company to produce goods or services better or more cheaply than its rivals.

Question 28

What is sustainable competitive advantage

Answer 28

Sustainable= permanent

A Permanent advantage over your competition

4 ways companies achieve this

Question 29

Four ways for companies to gain a sustainable competitive advantage?

Answer 29

Unique Selling Proposition
Lower Production Costs
Servicing a Niche Market
Creating Customer Loyalty

Question 30

What is unsustainble competitive advantage

Answer 30

Non sustainable= temporary

Competitive advantages that can be easily
used by competitors to gain market share

Question 31

What are non-sustainable competitive advantages for products

Answer 31

Promotion
Place
Price
Quality
Benefits of use
Design features

Question 32

What are non-sustainable competitive advantages for services

Answer 32

Convenience
quality of service
selection
reputation
price

Question 33

Push strategys

Answer 33

Product placement in stores
✰ Shelf space/floor space
✰ Dealer incentives
✰ Discounts for retailers
✰ Special displays
✰ prizes

Question 34

Pull strategies

Answer 34

Creative advertising
✰ Samples
✰ Coupons
✰ Other sales promotion techniques