Paper 2 - Making Marketing Decisions

Question 1

AESTHETICS

Answer 1

How things appeal to the senses.

Question 2

EXTENSION STRATEGY

Answer 2

An attempt to prolong sales of a product for the medium to long term, to prevent it from entering its decline stage.

Question 3

FUNCTION

Answer 3

How well the product or service works for the customer - does the smartphone take sharp pictures?

Question 4

PRODUCT DIFFERENTIATION

Answer 4

The extent to which consumers see your product as being distinct from its rivals.

Question 5

PRODUCT LIFE CYCLE

Answer 5

The theory that every product goes through the same four stages of introductio, growth, maturity and decline.

Question 6

PROFIT MARGINS

Answer 6

Profit as a percentage of the selling price (1 unit) or as a percentage of total sales revenue (for the business as a whole).

Question 7

BRANDING

Answer 7

Giving your product or service a name that helps recall and recognition and gives a sense of personality.

Question 8

PROMOTIONAL STRATEGY

Answer 8

A medium to long term plan for communicating with your target customers.

Question 9

DISTRIBUTION

Answer 9

How ownership changes as a product goes from producer to consumer.

Question 10

RETAILER

Answer 10

A shop or chain of shops usually selling from a building.

Question 11

BUDGET

Answer 11

A ceiling on the amount of money that can be spent.