section 3

Question 1

Market Share

Answer 1

the percentage of total market sales held by one brand or business

Question 2

Mass Market

Answer 2

where there is a very large number of sales of a product

Question 3

Niche Market

Answer 3

a small, usually specialized, segment of a much larger market

Question 4

Market Segment

Answer 4

an identifiable sub-group of a whole market in which consumers have similar characteristics or preferences

Question 5

Product Orientated Business

Answer 5

a business whose main focus of activity is on the product itself

Question 6

Market Orientated Business

Answer 6

a business which carries out market research to find out consumer wants before a product is developed and produced

Question 7

Market Research

Answer 7

the process of gathering, analyzing and interpreting information about a market

Question 8

Primary Research

Answer 8

the collation of original data via direct contact with potential or existing customer. Also called field research

Question 9

Secondary Research

Answer 9

information that has already been collected and made available for use by others. Also called desk research

Question 10

Questionnaire

Answer 10

a set of questions to be answered as a means of collecting data for market research

Question 11

Sample

Answer 11

the group of people who are selected to respond to a market research exercise, such as a questionnaire

Question 12

Random Sample

Answer 12

when people are selected at random as a source of information for market research

Question 13

Quota Sample

Answer 13

Quota Sample
when people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research

Question 14

Focus Group

Answer 14

a group of people who are representative of the target market

Question 15

Marketing Mix

Answer 15

a term which is used to describe all the activities which go into marketing a product or service. These activities are often summarized as the four Ps - product, price, place and promotion

Question 16

Brand Name

Answer 16

the unique name of a product that distinguishes it from other brands

Question 17

Brand Loyalty

Answer 17

when consumers keep buying the same brand again and again instead of choosing a competitors brand

Question 18

Brand Image

Answer 18

an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors’ brands

Question 19

Packaging

Answer 19

the physical container or wrapping for a product. It is also used for promotion and selling appeal

Question 20

Product Life Cycle

Answer 20

describes the stages a product will pass through from its introduction, through its growth until it is mature and then finally its decline

Question 21

Cost-Plus Pricing

Answer 21

the cost of manufacturing the product plus a profit mark-up

Question 22

Competitive Pricing

Answer 22

when the product is prices in line with or just bellow competitors’ prices to try and capture more of the market

Question 23

Penetration Pricing

Answer 23

when the price is set lower than the competitors’ prices in order to be able to enter a new market

Question 24

Price Skimming

Answer 24

where a high price is set for a new product on the market

Question 25

Promotional Pricing

Answer 25

when a product is sold at a very low price for a short period of time

Question 26

Price Elasticity

Answer 26

a measure of the responsiveness of demand to a change in price

Question 27

Marketing Strategy

Answer 27

a plan to combine the four elements of the marketing mix for a product or service to achieve a particular marketing objective