Marketing Year 10

Question 1

What are the 4Ps?

Answer 1

Product, Price, Place, Promotion

Question 2

What is qualitative market research?

Answer 2

Research that gathers people’s opinions and attitude

Question 3

What is quantitative market research?

Answer 3

Research that gathers numerical data for analysis

Question 4

What is primary research?

Answer 4

First hand research that gathers direct answers to the research question

Question 5

What is secondary market research?

Answer 5

Research that was gathered for a different purpose, it indirectly helps with the research question

Question 6

Give 4 examples of primary research methods

Answer 6

questionnaires, interviews, trialling, focus groups

Question 7

Give 4 examples of secondary research methods

Answer 7

MINTEL reports, news items, competitor information, internal sales data

Question 8

Give 5 pricing methods

Answer 8

price skimming, cost-plus, penetration, competitor, promotional

Question 9

What is the pricing strategy called when businesses charge a high price to target customers who will pay most

Answer 9

price skimming

Question 10

What is the promotional strategy called when a business makes no profit on a sale but expects customers to buy other products?

Answer 10

loss leader

Question 11

Explain the cost-plus pricing method

Answer 11

A business works out the cost of a product and then adds a desired percentage on to each product

Question 12

Give 5 examples of how to segment the market

Answer 12

age, gender, lifestyle/interests, income, location

Question 13

When doing market research, give 3 ways of selecting your sample population

Answer 13

Random, quota, stratified

Question 14

How does random sampling work?

Answer 14

Everyone in the population has an equal chance of being included in the survey

Question 15

How does quota sampling work?

Answer 15

quota sampling requires that representative individuals are chosen out of 1 specific subgroup

Question 16

How does stratified sampling work?

Answer 16

The population is divided (“stratified”) by the most important variables such as income, age and location. The required number is then drawn from each stratum.

Question 17

Give 5 methods of Promotion for a business

Answer 17

Advertising, Public Relations, Direct marketing, personal selling, sales promotions

Question 18

Give 3 methods of advertising and comment on the price and reach

Answer 18

Bus stops - cheaper and local
TV - expensive and mass reach
Newspapers - quite expensive and targeted reach

Question 19

Give 2 examples of sales promotions

Answer 19

Buy One Get One Free (BOGOF) and loyalty cards

Question 20

Give 2 examples of direct marketing

Answer 20

Cookies on computers, email adverts

Question 21

What is Public Relations?

Answer 21

Indirect promotion when a business raises its company profile by supporting causes eg local events and campaigns McDonalds litter picks

Question 22

Give examples of companies that use personal selling

Answer 22

car company 1-to-1 sales staff or double glazing calling up

Question 23

What are the 4 stages of the product life cycle in order?

Answer 23

Introduction, Growth, Maturity, Decline

Question 24

In the product life cycle, what does the curve up from the maturity stage show?

Answer 24

Extension strategies

Question 25

How would the product life cycle of a technology product differ from a breakfast cereal?

Answer 25

The shape is the same curve but the time it takes to move through the stages in technology is rapid

Question 26

What will influence the promotional methods chosen by a business?

Answer 26

finance available to the business, what competitors are doing

Question 27

What is the marketing mix?

Answer 27

The blend of the 4Ps decided upon by the business and all 4Ps have to work consistently together

Question 28

Give an example of consistent marketing mix

Answer 28

A BMW car has a high price, quality product, well-informed sales staff and a showroom in a smart post code

Question 29

Give an example of a direct sales channel (place)

Answer 29

Manufacturer direct to customer via internet

Question 30

What is a wholesaler?

Answer 30

Retailer that buys in bulk and sells to smaller retailers and takes profit by adding to the price of the product

Question 31

What is an agent?

Answer 31

A sales method where the retailer does not buy the product and sell it on but sells for someone else and takes a % of each sale eg an estate agent

Question 32

What is the purpose of marketing in a business?

Answer 32

To understand and identify the customer needs To tell customers about your product/service To increase your sales

Question 33

What is the difference between a product and service?

Answer 33

a product is a physical item that a customer owns eg a games console or a pack of crisps a service is a non-physical benefit that the customer pays for eg a hair cut or broadband

Question 34

What is meant by Point of Sale?

Answer 34

The promotion that takes place in the shop

Question 35

Give examples of Point of Sale promotion

Answer 35

Price reductions, competitions, loss leader, free samples

Question 36

What marketing decisions does a business take with its product?

Answer 36

The design of the product and packaging | How to innovate/adapt the product

Question 37

What is the advantage of using a digital distribution channel ie online?

Answer 37

Wider customer reach leading to increase in revenue | Reduce bricks and mortar costs like rent

Question 38

What is the disadvantage of digital distribution?

Answer 38

Increased shipping costs | Customers can't try the product first

Question 39

What is the advantage of physical/bricks and mortar distribution?

Answer 39

Customers can try the product | Face to face selling/advice

Question 40

What is the disadvantage of physical/bricks and mortar distribution?

Answer 40

Higher bricks and mortar costs like rent | Limited reach to the area around the shop