Theme 1

Question 1

Advantages of Mass Markets

Answer 1

Larger Volume of sales, Non-Specific Products - easier to sell.

Question 2

Disadvantages of Mass Markets

Answer 2

High Competition, Inflexible to Changes in Demand.

Question 3

Advantages of Niche Markets

Answer 3

High Profit Margins, Less Competition, Small Scale Production - Flexible.

Question 4

Disadvantages of Niche Markets

Answer 4

High Risk - Inconsistent Demand, High Unit Costs - No EOS

Question 5

Market Share Equation

Answer 5

SALES OF A BUSINESS/TOTAL SALES X 100

Question 6

How To Adapt To A Dynamic market

Answer 6

Be Flexible With The Market, Investment in new Technology and Products.

Question 7

Advantages of Primary Research

Answer 7

Reliable, Tailored to the Business, Qualitative Data

Question 8

Disadvantages of Primary Research

Answer 8

Time Consuming, Expensive, Biased Questions/Responses

Question 9

Advantages of Secondary Research

Answer 9

Easily Accessible, Quick and Efficient.

Question 10

Disadvantages of Secondary Research

Answer 10

Can Be Expensive, May not be up-to-date.

Question 11

Product Orientation

Answer 11

Product is developed with quality/function in mind but not necessarily in line with customer requirements.

Question 12

Market Orientation

Answer 12

The consumer is the most important factor when providing products for the market in other words, the business has a sensitivity to customer requirements.

Question 13

Market Mapping

Answer 13

Technique used to understand how products/businesses are viewed relative to competitors, based on two relevant characteristics.

Question 14

Advantages of Market Mapping

Answer 14

Helps Decision Making, Gain Better Understanding of Customers + Competitors.

Question 15

Disadvantages of Market Mapping

Answer 15

Often perceptions of businesses may not fit into the model, New Entrants may change the market.

Question 16

Competitive Advantage

Answer 16

A sustainable way that a business can keep its products/services ahead of competition.

Question 17

How Can A Competitive Advantage Be Achieved?

Answer 17

By using resources to achieve a cost advantage or differentiation advantage.

Question 18

Factors Affecting Demand?

Answer 18

SIDS CAFE

Question 19

Demand Increase?

Answer 19

Outward Shift Right

Question 20

Demand Decrease?

Answer 20

Inward Shift Left

Question 21

Factors Affecting Supply?

Answer 21

SPITE - Subsidies, Production Cost, Indirect Tax, Technology, External Shocks.

Question 22

Increase In Supply?

Answer 22

Outward Shift Right

Question 23

Decrease In Supply?

Answer 23

Inward Shift Left

Question 24

PED Formula?

Answer 24

% Change in QD/% Change in Price

Question 25

Elastic Products

Answer 25

Between - 1 and - Infinity

Question 26

Inelastic Products

Answer 26

Between 0 and - 1

Question 27

Factors Influencing PED

Answer 27

Degree Of Differentiation, Number Of Substitutes, Luxury or Necessity?, Cost, Value of Brand.

Question 28

Significance of PED

Answer 28

Helps understand consumers responsiveness to price change, Pricing Strategy, Sales Forecasting.

Question 29

YED Formula?

Answer 29

% Change in QD/ % Change in Income (Y)

Question 30

Normal Good

Answer 30

Demand Increase as Income Increases, Inelastic, Between 0 and 1, Examples; Milk and Bread.

Question 31

Luxury Good

Answer 31

Demand Rises as Income Rises, Elastic, Positive Number Greater Than 1, Examples; Business Class Travel, Luxury Cars.

Question 32

Inferior Good

Answer 32

Demand Falls as Income Rises, Negative Number, Examples, Supermarket Own Brands + Bus Transport.

Question 33

Factors Influencing YED

Answer 33

Inelastic or Elastic? Brand Power, Consumer Spending, Expectations.

Question 34

Design Mix

Answer 34

Aesthetics, Function, Cost.

Question 35

Why Is Design Mix Important

Answer 35

Gives a business competitive advantage over rivals.

Question 36

Above The Line Advertisement

Answer 36

Advertising to a mass audience - TV, Cinema, Newspaper.

Question 37

Advantages of ATL Advertisement

Answer 37

Reach Large Audiences Very Quickly

Question 38

Disadvantages of ATL Advertisement

Answer 38

Very Expensive, Could Target Wrong Audience.

Question 39

Below The Line Advertisement

Answer 39

Personal Advertising to Small Niche Markets - Posters, Leaflets, Social Media.

Question 40

Advantages of BTL Advertisement

Answer 40

Increased Customer Loyalty, Ability To Target Promotion.

Question 41

Disadvantages of BTL Advertisement

Answer 41

Targeting Different Cultures Can Be Difficult, Smaller Audiences.

Question 42

Branding Definition

Answer 42

A name or symbol that distinguishes one product from another supplier.

Question 43

Factors To Determine Pricing Strategy

Answer 43

Brand Strength, Level of Competition, PED, Stage of Product Life Cycle.