Topic 2-Marketing

Question 1

What is marketing?

Answer 1

The management process for identifying, anticipating and satisfying customer requirements profitably.

Question 2

What is the role of marketing?

Answer 2

• Identify the customer needs.
• Increase sales.
• To inform customers.

Question 3

What is Market research?

Answer 3

It is how the business collects information on whether products or services will be bought.

Question 4

What is primary research?

Answer 4

The process of collecting and analysing original information that has been planned and collected first hand.

Question 5

What are some examples of how a business could carry out primary research?

Answer 5

• Questionnaires.
• Focus groups.
• Interviews.
• Trials.

Question 6

What is secondary research?

Answer 6

The collection and use of information which has already been collected.

Question 7

What are some examples of how a business could carry out secondary research?

Answer 7

• newspapers.
• magazines.
• Census data.

Question 8

What is qualitative data?

Answer 8

Data collected on the opinion of the customers.

Question 9

What is quantitative data?

Answer 9

Data that is collected relating to facts and numbers.

Question 10

What are the advantages to questionnaires?

Answer 10

• Cheaper than interviews.

- They easily target particular customers.

Question 11

What are the disadvantages to questionnaires?

Answer 11

• Difficult to predict how many questionnaires would be completed.
• May not understand the question being asked.

Question 12

What are the advantages to interviews?

Answer 12

• Can explain questions that are misunderstood.

- Customers are targeted easily.

Question 13

What are the disadvantages to interviews?

Answer 13

• Customers May feel uncomfortable.

- Expensive because they have to pay for an interviewer.

Question 14

What is the advantage to trials?

Answer 14

-Conducted in a small area.

Question 15

What is the disadvantage to trails?

Answer 15

-Costly to set up and sometimes money is wasted.

Question 16

What is the advantage to focus groups?

Answer 16

The data from them is very accurate and can be relied on to make important decisions.

Question 17

What is the disadvantage to focus groups?

Answer 17

They are more expensive per person than interviews and questionnaires.

Question 18

What are the advantages to secondary research?

Answer 18

• Quicker.

- Cheaper.

Question 19

Why is secondary research quicker?

Answer 19

The research was already carried out by another business.

Question 20

What are the disadvantages to secondary research?

Answer 20

• May be not what the business wants exactly.

- May be our of date.

Question 21

What is Market segmentation?

Answer 21

When a business separates their market to make it easier to target their products or services.

Question 22

Why do businesses segment a market?

Answer 22

• To target particular groups of customers.

- So that the product, price and promotion can match what particular groups want.

Question 23

What can a market be segmented by?

Answer 23

• Income.
• Age.
• Gender.
• Location.
• Lifestyle.

Question 24

What are the four “p”s for the ways a business should market their products?

Answer 24

• Product.
• Place.
• Price.
• Promotion.

Question 25

What can affect the price a business charges for their device or product?

Answer 25

• Target market.
• Competition selling similar products.
• Cost to make the product.

Question 26

What is skimming?

Answer 26

When a product is more advanced the business sets the product at a higher price.

Question 27

What is cost plus pricing?

Answer 27

A pricing method that adds a percentage for profit to the total costs of making the product.

Question 28

What is penetration pricing?

Answer 28

Setting the price lower to competitors.

Question 29

What is competitor pricing?

Answer 29

Setting the price based on competition.

Question 30

What is promotional pricing?

Answer 30

Reducing prices to give products a boost or to sell off old stock.