Theme 1

Question 1

Indirect taxes

Answer 1

Taxes on goods and services rather than on income or profits e.g cigarettes

Question 2

Emotional branding

Answer 2

Creating a brand that directly appeals to the customers emotional state e.g Nike

Question 3

Intrapreneurship

Answer 3

People within a business creating/discovering new business opportunities which leads to a higher level of innovation

Question 4

Profit maximisation

Answer 4

Making as much profit as possible by determining the price and output level that returns the greatest profit

Question 5

Profit satisficing

Answer 5

Making enough profit to keep shareholders happy

Question 6

Lifestyle business

Answer 6

Where the aim is to sustain a particular level of income and no more in order to enjoy a particular lifestyle

Question 7

Government subsidies

Answer 7

Any support given by the government (non financial or financial) to a producer or sometimes a consumer e.g to provide more jobs in an area

Question 8

Ethical sourcing

Answer 8

Where a business only buys products that are produced with fair working conditions and pay for workers, as well as minimalising the impact on the environment

Question 9

Niche marketing

Answer 9

A smaller segment of a larger market, where customers have specific needs and wants requiring differentiated products

Question 10

Mass marketing

Answer 10

The largest part of the market, where there are many similar undifferentiated products offered by competitors

Question 11

Market size

Answer 11

The overall size or demand for a specific market

Question 12

Market growth

Answer 12

The percentage rate of growth in market size over a period

Question 13

Market share

Answer 13

The proportion of market size held by each competitor in a market

Question 14

Dynamic market

Answer 14

Market that is constantly changing e.g film industry

Question 15

Competitive advantage

Answer 15

The ability of a business to add more value for its customers than its rivals and attain a position of relative advantage

Question 16

Product orientation

Answer 16

Business develops products based on what it is good at doing

Question 17

Market orientation

Answer 17

Business responds to customer needs and wants - designs products accordingly

Question 18

Test marketing

Answer 18

Selling a new product in a small section of the market in order to assess customer reaction

Question 19

Sampling

Answer 19

The gathering of data from a sample of respondents, the results which should be representative of the population as a whole

Question 20

Data mining

Answer 20

An example of secondary research that relies on data that is already there

Question 21

Marketing research

Answer 21

Collection of data to obtain insight and knowledge into the needs and wants of customers and the structure and dynamics of a market

Question 22

Primary data

Answer 22

Research data collected first hand for a specific purpose

Question 23

Secondary data

Answer 23

Existing research data that has been collected and analysed for a different purpose

Question 24

Quantitative research

Answer 24

Research based on numerical data

Question 25

Qualitative data

Answer 25

Research based on views and opinions

Question 26

Market positioning

Answer 26

The place a product occupies in customer minds relative to competing products

Question 27

Product differentiation

Answer 27

Where a product has a value proposition that is sustainably different from the competition

Question 28

Adding value

Answer 28

Increasing the worth of a product or service

Question 29

Market mapping

Answer 29

A diagram that identifies all the products in the market using two key features