Section 3 -- Marketing

Question 1

define ‘marketing’

Answer 1

identifying and meeting the needs of customers

Question 2

define ‘customer loyalty’

Answer 2

willingness of customers to continue to buy the same product from the same business

Question 3

define ‘customer relationships’

Answer 3

communicating with customers to encourage them to become loyal to the business and it’s products

Question 4

define ‘mass market’

Answer 4

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

Question 5

define ‘niche market’

Answer 5

a small, usually specialised segment of a much larger market

Question 6

define ‘market segment’

Answer 6

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

Question 7

define ‘market share’

Answer 7

percentage of total market sales held by one brand or business

Question 8

define ‘product orientated’

Answer 8

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

Question 9

define ‘market orientated’

Answer 9

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

Question 10

define ‘marketing budget’

Answer 10

a financial plan for the marketing of a product or product range for some specified period of time

Question 11

define ‘market research’

Answer 11

process of gathering, analysing and interpreting information about a market

Question 12

define ‘primary research’

Answer 12

collection of original data via direct contact with potential or existing customers

Question 13

define ‘secondary research’

Answer 13

information that has already been collected and is available for others to use

Question 14

define ‘questionnaire’

Answer 14

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

Question 15

define ‘sample’

Answer 15

group of people who are selected to respond to a market research exercise

Question 16

define ‘random sample’

Answer 16

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

Question 17

define ‘quota sample’

Answer 17

when people are selected on the basis of certain characteristics

Question 18

define ‘focus groups’

Answer 18

group of people who are representative of the target market

Question 19

define ‘marketing mix’

Answer 19

term to describe all the activities which go into marketing a product or service

Question 20

define ‘USP’

Answer 20

special feature of a product that differentiates it from the products of competitors

Question 21

define ‘brand name’

Answer 21

unique name of a product that distinguishes it from other brands

Question 22

define ‘brand loyalty’

Answer 22

when consumers keep buying the same brand again and again instead of choosing a competitor’s brand

Question 23

define ‘brand image’

Answer 23

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

Question 24

define ‘packaging’

Answer 24

physical container or wrapping for a product used for promotion and selling appeal

Question 25

define ‘product life cycle’

Answer 25

stages of product will pass through from it’s introduction, through its growth until it is mature and then finally its decline

Question 26

describe a products life cycle

Answer 26

1. development
2. introduction to market
3. growth increasing sales
4. maturity product changes
5. saturation at it’s best
6. decline

Question 27

define ‘extension strategy’

Answer 27

way of keeping a product at the maturity stage of the life cycle and extending the cycle

Question 28

define ‘cost-plus pricing’

Answer 28

cost of manufacturing the product plus a profit mark-up

Question 29

define ‘competitive pricing’

Answer 29

product is priced in line with or just below competitors’ prices to try to capture more of the market

Question 30

define ‘penetration pricing’

Answer 30

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

Question 31

define ‘price skimming’

Answer 31

high price is set for a new product on the market

Question 32

define ‘promotional pricing’

Answer 32

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

Question 33

define ‘psychological pricing’

Answer 33

the price is set to match the consumers expectations and perceptions of the product

Question 34

define ‘price elasticity’

Answer 34

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

Question 35

define ‘promotion’

Answer 35

marketing activities aim to raise customer awareness of a product or brands, generating sales and helping to create brand loyalty

Question 36

define ‘informative advertising’

Answer 36

emphasis of advertising or sales promotion is to give full information about the product

Question 37

define ‘persuasive advertising’

Answer 37

advertising or promotion which is trying to persuade the consumer that really need the product to buy it

Question 38

define ‘target audience’

Answer 38

people who are potential buyers of ap roduct or service

Question 39

define ‘sales promotion’

Answer 39

incentives such as special offers or special deals aimed at consumers to achieve shirt-term increases in sales

Question 40

define ‘marketing budget’

Answer 40

financial plan for the marketing of a product or product range for a specified period of time

Question 41

define ‘distribution channel’

Answer 41

product is passed from the place of production to the customer or retailer

Question 42

define ‘agent’

Answer 42

independent person or business that is appointed to deal with the sales and distribution of a product or range of products

Question 43

define ‘e-commerce’

Answer 43

buying and selling of goods and services using computer systems linked to the internet

Question 44

define’ marketing strategy’

Answer 44

plan to combine the right combination of the 4 elements of the marketing mix for a product or service to achieve a particular marketing objective(s)