Perry

Question 1

Formula for market share

Answer 1

Business sales/

Total market share x 100

Question 2

Formula for market growth

Answer 2

(New -old)/
Old
X 100

Question 3

What is market segmentation?

Answer 3

A sub group of consumers with similar characteristics and these can be grouped into 
Age
Gender
Occupation
Hobbies
Income 
Location

Question 4

Physical marketing

Answer 4

Going into the shop and buying the good

Local

Question 5

Electronic marketing

Answer 5

Going online to buy goods

(Inter)national

Question 6

What is the definition for market research?

Answer 6

The collection, collation and analysis of data relating to the marketing and consumption of goods and services

Question 7

What are the four points on a market map?

Answer 7

High quality
Low quality
High price
Low price

Question 8

Primary research

Answer 8

Research conducted by the business e.g. Questionnaire

Question 9

Secondary research

Answer 9

Research which already exists and was conducted by another business, this is easily accessible on the internet

Question 10

Quantitative research

Answer 10

This is research with closed questions which can easily be analysed using charts and graphs e.g. Questionnaire answers

Question 11

Qualitative research

Answer 11

This involves looking at the opinions of the target audience e.g. Focus groups

Question 12

What is random sampling?

Answer 12

This is when people are randomly selected from a statistical population in such a way that everyone has an equal chance of being selected

Question 13

Quota sampling

Answer 13

Pre-determined section of people based on the characteristics of the target audience

Question 14

Stratified sampling

Answer 14

This is combination of quota and random where by a population are split into groups and then selected at random

Question 15

Cluster sampling

Answer 15

Business identifies and area of the country or city that represents the population as a whole

Question 16

What are the 7 Ps of the marketing mix/strategy?

Answer 16

Price
Promotion
Place
Product
Physical environment 
People 
Process

Question 17

What does SMART stand for and what does it involve?

Answer 17

Objectives and it stands for 
Specific 
Measurable
Achievable/Agreed 
Realistic 
Time related

Question 18

Promotional pricing

Answer 18

Using sales promotions and offers to attract the attention of customers

Question 19

Price skimming

Answer 19

Start price high, gradually lower price

Question 20

Penetration pricing

Answer 20

Start price low and gradually increase

Question 21

Loss leader

Answer 21

Sell product at a loss with the purpose of attracting customers to buy other related products

Question 22

Competitive pricing

Answer 22

Price of product is based on that of its competitors

Question 23

What are the 7 potential stages in a products life cycle?

Answer 23

Research and development 
Introduction 
Growth
Maturity
Saturation
Decline
Extension strategies

Question 24

What are the characteristics of a cash cow in the Boston matrix?

Answer 24

High market share, low market growth

Question 25

Star

Answer 25

High market share and growth

Question 26

Dog

Answer 26

Low market share and growth

Question 27

Question mark

Answer 27

Low market share and high market growth

Question 28

What is the definition for price elasticity of demand (PED)?

Answer 28

The responsiveness of demand when the price of a product changes

Question 29

What is the formula to calculate PED?

Answer 29

% change in quality demanded /

% change in price