mini test feb 2023

Question 1

Boston matrix

Answer 1

a method of analysing brands in a firms product portfolio in terms of market share and market growth. brands are classified as cash cows, dogs, question marks and stars

Question 2

confidence levels

Answer 2

the probability that the research findings are correct. This is expressed as a percent eg 99% confidence that the findings are accurate

Question 3

correlation

Answer 3

a statistical technique used to establish the strength of a relationship between two sets of values eg the sales of ice cream may tend to rise as the temperature rises ie positive correlation

Question 4

distribution channels

Answer 4

ways of getting the products to where the customer can buy them. Eg selling directly on the internet or selling to a shop via a wholesaler

Question 5

extension strategy

Answer 5

attempts to raise sales when products are reaching the end of their product life cycle and have been declining eg via repackaging or modification

Question 6

extrapolation

Answer 6

using previous patterns of numerical data to estimate future values

Question 7

market growth

Answer 7

the percentage change in the volume or value of sales of all the brands in the product category

Question 8

market segmentation

Answer 8

dividing the market up into groups of potential customers, each with different characteristics

Question 9

niche marketing

Answer 9

targeting a small specialised part of an overall market eg left handed goal clubs

Question 10

pricing strategy

Answer 10

long term goal regarding price eg John Lewis “never knowingly undersold” was a longstanding commitment

Question 11

pricing tactic

Answer 11

short term approach to pricing designed to deal with a short term threat or opportunity