Mock Exam Revision

Question 1

components of the Marketing Mix

Answer 1

Product
Price
Place
Promotion

Question 2

define consumer

Answer 2

a person who buys goods or services for personal use

Question 3

Why businesses use marketing

Answer 3

1) to understand customer needs
2) to keep ahead of customers
3) to communicate effectively with the public
4) to increase sales/profitability
5) to increase market share
6) to increase customer numbers

Question 4

define niche market

Answer 4

a market targeting specific customers

Question 5

state the meaning of USP

Answer 5

Unique Selling Point

Question 6

what are the benefits of having a USP?

Answer 6

1) MAKE IT STAND OUT
2) GIVES COMPETITIVE ADVANTAGE
3) IMPROVE SALES
4) INCREASE CUSTOMER NUMBER
5) IMPROVE MARKET SHARE

Question 7

EXAMPLE OF BRAND DIMENSION

Answer 7

• LOGO
• SLOGAN
• CELEBRITY ENDORSEMENT

Question 8

WHAT DOES THE S STAND FOR IN SWOT?

Answer 8

STRENGTH

Question 9

WHAT DOES THE T STAND FOR IN SWOT?

Answer 9

THREATS

Question 10

WHAT ARE EXAMPLES OF THE EXTERNAL ENVIRONEMNT?

Answer 10

• UNEMPLOYMENT/EMPLOYMENT LEVELS
• DISPOSABLE INCOME
• TAXATION
• INFLATION
• INTEREST RATES
• EXCHANGE RATES

Question 11

IMPORTANCE OF KNOWING COMPETITOR ACTIVITY

Answer 11

• to stay ahead of competitors
• to know competitor pricing
• to gain awareness of new competitor products

Question 12

advantages of primary research

Answer 12

• the methods chosen can be specific and flexible to meet the needs of the target market
• research gathered is up to date and current

Question 13

disadvantages of primary research

Answer 13

• methods can be time consuming
• no guarantee that the data is accurate and without bias
• business might not have skills or experience to undertake primary research

Question 14

what is meant by profitability

Answer 14

ability of the business to generate revenue greater than its costs

Question 15

if a business sells products to customers/consumers what type of market do they operate in?

Answer 15

business to consumer

Question 16

what does the S stand for in SMART Targets?

Answer 16

specific

Question 17

what does the m stand for in SMART Targets

Answer 17

measurable

Question 18

what does the R stand for in SMART Targets

Answer 18

Realistic

Question 19

a term used to describe the collection of products offered by a business

Answer 19

Product portfolio

Question 20

according to the product life cycle, when a business enters the market or new to the market what stage are they in?

Answer 20

introduction

Question 21

when a business is developing new products that are not launched yet, what stage of the product life cycle are they in?

Answer 21

development

Question 22

what is the advantage of qualitative data?

Answer 22

• can show opinions and feelings of the customer
• it gives data that is specific to the business products
• can help build relationships with customers

Question 23

what are the advantages of market research?

Answer 23

• identify target audience and meet their needs

- identify gaps in the market and launch new products to meet customer needs

Question 24

benefits of using social media as a method of promotion

Answer 24

• free- saves business money
• gives a change to interact with customers
• can be shared by customers increasing their audience

Question 25

advantages of penetration pricing

Answer 25

• customers more likely to try low price product
• high sales in the begin
• stop competitors entering the mark
• increased promotion via word of mouth

Question 26

disadvantages of penetration pricing

Answer 26

• customers might associate low price with low quality
• people may only use product when it is low price and would not have customer loyalty
• difficult to raise price after setting a low price