Mock Revision

Question 1

Joint Venture

Answer 1

two or more businesses agree to work
closely together on a particular project and create a
separate business division to do so

Question 2

Private Limited

Answer 2

a small to medium-sized
business that is owned by shareholders who are family members or friends, it cannot sell
shares to the general public

Question 3

Public limited

Answer 3

a limited company, of en a large
business, with the legal right to sell shares to the general
public – share prices are quoted on the national stock
exchange.

Question 4

Limited Liability

Answer 4

the only liability – or potential loss – a
shareholder has if the company fails is the amount invested
in the company, not the total wealth of the shareholder.

Question 5

Sole Traders

Answer 5

Business in which one person provides the permanent finance and in return has full control of the business and keeps all of the profits i.e. Window cleaner, plumber, Florist

Question 6

Partnerships

Answer 6

Businesses owned by two or more people with shared capital investment and usually share responsibilities i.e. Dentist, Lawyers/ solicitors.

Question 7

What are the 4 P’s?

Answer 7

Price, Product, Promotion, Place

Question 8

Market share

Answer 8

Percentage of the total shares of a market a business owns.

Question 9

Name as many Marketing Objectives

Answer 9

Gain market share 
Increase total sales 
Increase average number of items purchased per customer visit 
Increase frequency of customer visits 
Increase percentage of customers who are returning customers
Increase number of new customers 
Increase customer satisfaction 
Increase brand identity

Question 10

Product orientation

Answer 10

An inward looking approach that focuses on making products that can be made- or have been made for a long time- and then trying to sell them

Question 11

Market orientation

Answer 11

An outward looking approach basing product designs on consumer demand as established by market research

Question 12

What are the 4cs

Answer 12

Customer solution
Cost to customer
Communication with customer
Convience to cutomer

Question 13

Promotion

Answer 13

ways in which a business attempts to draw consumers’ attention to a product.

Question 14

What is AIDA

Answer 14

Attention
Interest
Desire
Action

Question 15

Promotion Objectives

Answer 15

Increase sales by raising consumer awareness
Increase purchases by existing customers or attract new ones
Demonstrate superior qualities/specification
Create or reinforce the brand image
Correct misleading reports the public or other businesses may have seen
Develop the public image of the business
Encourage retailers to stock the products.

Question 16

Advertising

Answer 16

Presentation and promotion of ideas, goods, or services by a business.

Question 17

Advertising

Answer 17

Presentation and promotion of ideas, goods, or services by a business.

Question 18

Sales promotion

Answer 18

Media and non-media marketing communications are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability

Question 19

Direct Marketing

Answer 19

a form of advertising that allows businesses and non profit organisations to communicate straight to the customer, with advertising techniques

Question 20

Sponsorship

Answer 20

When a business pays to be associated with a certain event, in order to get its name/product seen by potentially millions of viewers or other interested parties.

Question 21

Public relations

Answer 21

Communications (either personal or written), or service, which can be free, provided by the business incorporating news about it or a favourable presentation of it in the media.

Question 22

Above the line promotion

Answer 22

mass media is used to promote brands and reach out to the target consumers. These include conventional media such as television and radio advertising, print as well as internet.

Question 23

Below the line production

Answer 23

promotional techniques which aim to reach consumers more directly and which are more within the organisation’s control.i.e Direct messaging, fair trades, text messages

Question 24

‘Percentage of sales’ method for expenditure budgets

Answer 24

budget varies with level of sales. Good if sales are increasing (more money available). Not so good if sales are decreasing

Question 25

‘Objective based budgeting’ method of expenditure budget

Answer 25

calculate the level of sales required to meet objectives, then assess how much is needed to support this level

Question 26

Competitor based budget

Answer 26

trying to match the amount spent by the main competitor. Could lead to budget spiralling out of control and competitor may have a very effective, creative promotional team, and therefore cannot be easily matched.

Question 27

What the business can afford budget method

Answer 27

at the start of a business promotion is sometimes seen as a luxury, to be paid for after all other expenses have been paid and therefore not much money will be available. This does not take account of either market conditions or marketing objectives

Question 28

Incremental budgeting

Answer 28

Take last year’s budget allocation and simply add on an extra amount – usually in line with either inflation or increased level of sales. Drawback it does require Marketing Manager to justify the amount being spent just the added increment

Question 29

Cash flow forecast

Answer 29

Simple statement showing cash inflows, cash outflows as well as closing and opening balances