Topic 5 - Marketing Exam Style Questions

Question 1

What are customers’ needs?

Answer 1

Certain things that you cant live without

Question 2

What is the role of a distributor

Answer 2

Distributors buy products from manufacturers and sell them on to businesses or consumers

Question 3

What are customers’ wants?

Answer 3

Customer wants are products that are desired (luxuries)

Question 4

When does a person become a customer

Answer 4

Once a product or service has been sold to them

Question 5

Explain how a business should satisfy customer needs

Answer 5

A business should identify the needs of potential customers and it should adapt to the changing needs of existing customers.

Question 6

What is an advantage of being market-driven rather than product-driven

Answer 6

• Increase sales

- Improve current products and customer satisfaction

Question 7

Define Market Segmentation

Answer 7

Market segmentation is the process of dividing potential customers into different groups based on characteristics like age, gender, income etc.

Question 8

Explain a disadvantage for businesses that segment their market

Answer 8

• Segmentation involves breaking up a market into different parts based on characteristics.
• Segmenting a market can mean a particular business that does not focus on targeting their products or marketing other people outside of this segment.
• This may stop potential customers from purchasing the business’ products or services

Question 9

Define Market Research

Answer 9

Market research is the process of collecting and processing information about the market that a business operates in

Question 10

Define Marketing

Answer 10

The process of identifying and satisfying customers needs profitably

Question 11

What are the four Elements of the Marketing Mix

Answer 11

• Product
• Price
• Place
• Promotion

Question 12

Define Product development

Answer 12

When developing a new product, the business needs to think about the design, the price, the expected sales and the cost of development and production. This process is called Product development

Question 13

Define Product differentiation

Answer 13

Businesses need to stand out from their competitors by changing their products. This is known as product differentiation. This can be done by building brand image and having a unique selling point (USP)

Question 14

Define Product portfolio

Answer 14

As businesses grow, so does the range of products that they sell. This collection of products is called a product portfolio. This can be measured by the Boston Matrix

Question 15

Define Boston Matrix

Answer 15

The Boston matrix helps is a diagram that shows the market share and market growth of products and can help plan out the next stage with the product

Question 16

What are the 5 stages of product life cycle and explain the effect of sales during the stage

Answer 16

• Research & development (designed and tested). No sales revenue.
• Introduction (launch of the product). Little sales revenue.
• Growth (product is becoming more successful). Increasing sales revenue.
• Maturity (sales of the product begin to slow). Same sales revenue.
• Decline (sales will start to fall). Decreasing sales revenue.

Question 17

What are the 4 elements of the Boston Matrix model and give the stages of each element

Answer 17

• Cash Cow - A product that has a high market share in a low-growth market (The Business will keep selling this product)
• Dogs - A product that is fit in a low market growth and has a low market share (Most likely for the product to be declining and eventually would be stopped selling)
• Stars - A product that has a high market share in a fast-growth market (Product is thriving in the market and would probably be focused on by the business)
• Question Marks - A product with a low market share in a fast-growth market (The business questions whether the product was a good investment, Might require a change)

Question 18

Name 3 pricing methods and their methods

Answer 18

• Price skimming (start high, reduce over time)
• Price penetration (start low price, increase over time)
• Competitive pricing (set a similar price to competitors)

Question 19

Name 4 factors that influence price

Answer 19

• Costs
• Degree of competition
• Product life cycle
• Nature of market

Question 20

Name 3 roles the channel of distribution can contain and their roles

Answer 20

• Producers – this is the maker of the product or service.
• Wholesalers – these businesses buy products and sell them in smaller quantities to retailers.
• Retailers – these are the shops that sell goods and services to the final customer.

Question 21

Define E- Commerce

Answer 21

The buying and selling of goods or services via the internet

Question 22

Define Intermediary

Answer 22

A link in the distribution chain between customers and producers

Question 23

Define Direct marketing

Answer 23

When there is a direct link between customers and producers (no intermediary).

Question 24

Name 3 Advertising methods

Answer 24

TV
Advantage - Global attention towards customers over many countries, cities etc.
Disadvantage - They are short timed, expensive for the value time it is advertised
Newspapers, magazines & billboards
Advantage - Cheaper, Lasts longer than other advertising methods
Disadvantage - Regular advertisements can be expensive
Public relations
Advantage - People are more likely to listen to recommendations from friends.
Disadvantage - Can be unreliable.

Question 25

Name 3 Advertising methods with advantages and disadvantages

Answer 25

TV
Advantage - Global attention towards customers over many countries, cities etc.
Disadvantage - They are short timed, expensive for the value time it is advertised
Newspapers, magazines & billboards
Advantage - Cheaper, Lasts longer than other advertising methods
Disadvantage - Regular advertisements can be expensive
Public relations
Advantage - People are more likely to listen to recommendations from friends.
Disadvantage - Can be unreliable.

Question 26

Give 2 promotion methods

Answer 26

Sponsorship - businesses can increase the profile of the business by sponsoring sport events, sports teams or television programmes.

Social media - a cheap way for businesses to promote their products and services online to a wide range of audiences globally.

Question 27

What is a ‘Brand Image’?

Answer 27

Brand image is what distinguishes a product or service from the product or service with which it competes.