Paper 1+2 Divider 4

Question 1

Market mapping

Answer 1

Positions produce on a matrix according to who measures the customers value

Question 2

Market mapping adv

Answer 2

• gap in the market
• identify close competitors
• repositioning=better business image

Question 3

Market mapping disad

Answer 3

• too simple

- subjective, based on opinion not data

Question 4

Primary research

Answer 4

Collection of new info

Focus groups, questionnaires, interviews

Question 5

Primary research adv

Answer 5

• up to date

- specific to business

Question 6

Primary research disad

Answer 6

• expensive

- time consuming

Question 7

Secondary research

Answer 7

Collecting info that already exist

Internet, feedback from sales employees

Question 8

Secondary research adv

Answer 8

• quicker to assess

- cheaper freely available

Question 9

Secondary research disad

Answer 9

• costly to buy specialist reports

- out of date data

Question 10

Qualitive

Answer 10

• finding out buying habits
• focus groups
• reveal customer psychology

Question 11

Quantitive

Answer 11

• questionnaires

- give clear valid statistic conclusions

Question 12

Sampling

Answer 12

• market research, like questionnaires
• business asks a small group of consumers
• reduces cost and time, rather than asking whole population

Question 13

Correlation

Answer 13

• positive: as independent variable increases, so does dependant
• negative: as independent increases, dependent decreases
• none: no relationship

-used to make predictions, but could be down to a coinscidence or external factors

Question 14

Confidence interval

Answer 14

• expressed as a %
• indicates of how likely the results obtain from a sample can be applied to the population
• the higher the confidence level, the wider the interval
• interval: a range of values you think the population will lie in

Question 15

Extrapolation

Answer 15

• used to forecast sales

- projection forward of a trend line in order to make a forecast of what wil happen in the future

Question 16

Extrapolation adv

Answer 16

• simple, quick, easy, done by eyes

- useful, for short term forecasting

Question 17

Extrapolation disad

Answer 17

• doesn’t take into account external factors

- assumes there is no histoiric events

Question 18

Using tech to make decisions

Answer 18

• loyalty cards

- could see what products sell more than others and increase customer satisfaction to avoid selling out

Question 19

Elasticity of demand

Answer 19

-measures the extent to which demand for a product changes when its price changes

• price increase=decrease in revenue
• price cut=increase in sales

Question 20

Value of concepts

Answer 20

• pricing decsions: a business might increase the price of more inelastic products
• output decisions: how much to increase output if dropping the price
• marketing mix: to make it more inelastic, e.g, through advertising

Question 21

The use of data adv

Answer 21

-up to date, makes better decisions

Question 22

The use of data disad

Answer 22

-needs to take into account feelings and a sense of where the market might be going (growth/innovation)