Topic 1.2

Question 1

Aesthetics

Answer 1

How things appeal to the senses: Do they look great, smell good, feel nice, sound solid, and taste great?

Question 2

Branding

Answer 2

Giving a product or service ‘personality,’ with a name and logo that makes it stand out.

Question 3

Choice

Answer 3

Giving customers options and increasing the chance that a product will be available which is perfect for the tastes/habits of one type of customer.

Question 4

Competitive advantage

Answer 4

Features of a product or service that make it stronger in the marketplace than its competitors.

Question 5

Customer needs

Answer 5

The products or services people have to have to make life comfortable.

Question 6

Customer wants

Answer 6

What people choose to spend their money on, once the weekly bills have been paid.

Question 7

Demographics

Answer 7

A study of the statistical differences that exist within a population, both now and in the future.

Question 8

Design

Answer 8

Deciding how something will look, both internally and externally.

Question 9

Design mix

Answer 9

Finding the right design balance between function, aesthetics, and cost of manufacture.

Question 10

Identifying customers

Answer 10

Finding out who they are: their age, gender, incomes, where they live, and what they want.

Question 11

Market map

Answer 11

Measuring where existing brands sit on a two-factor grid, such as young/old compared with high price/low price.

Question 12

Market segments

Answer 12

The subsets within a market that have been identified as a result of market segmentation.

Question 13

Market share

Answer 13

The percentage of a market held by one company or brand.

Question 14

Product

Answer 14

Targeting customers with a product that has the right blend of functional and aesthetic benefits, without being too expensive to produce.

Question 15

Product knowledge

Answer 15

How well staff know all the features of the products and the service issues surrounding the products.

Question 16

Product life cycle

Answer 16

The theory that every product goes through the same stages: introduction, growth, maturity, and decline.

Question 17

Product range

Answer 17

The number of different product types, sizes, colors, and brands offered by a company.

Question 18

Promotion

Answer 18

Within the 4Ps, promotion refers to all the means a business uses to persuade customers to buy, including branding, packaging, long-term image-building advertising, and short-term offers.

Question 19

Qualitative data

Answer 19

In-depth research into a small group of potential or actual customers to provide insight into why consumers buy what they buy.

Question 20

Quantitative data

Answer 20

Results from research among a large enough sample of people to provide statistically reliable results.

Question 21

Understanding customers

Answer 21

Learning why customers do what they do, making it easier to understand how to make a product that better suits them.

Question 21

Unique Selling Point (USP)

Answer 21

An original feature of a product that rivals aren’t offering.