Topic 5 - Paper 2

Question 1

Whats an exchange?

Answer 1

When someone gives up something in return for someone else. E.g product for cash

Question 2

Whats the marrketing mix?

Answer 2

A combination of factors that influence a customer decision to purchase a product

Question 3

What is sales volume

Answer 3

Measures the number of items sold

Question 4

What is sales value

Answer 4

Measures the revenue created from sales

Question 5

What is segmentation?

Answer 5

When a market is divided into different groups of needs and wants. E.g car market : family car, sports car

Question 6

What is market research?

Answer 6

Process of gathering and analysing data relevant to marketing decisions. For example you can measure demand, market share and competition

Question 7

Equation for market growth

Answer 7

Change in market size over original times 100

Question 8

What is quantitative data

Answer 8

Involves using numbers. E.g number of customers a business has

Question 9

What is qualitative data

Answer 9

Involves views and opinions. E.g a survey

Question 10

Equation for market shares

Answer 10

Sales of the product divide total market sales times 100

Question 11

What is primary market research

Answer 11

Uses data gathered for the first time. For example questionnaire to conduct a survey of potential customers

Question 12

What is secondary market research

Answer 12

Uses data that has already been gathered. E.g using information in a newspaper or published on a website.

Question 13

Types of primary market research

Answer 13

Telephone survey, door to door survey, focus groups, internet research

Question 14

What are the four P’s of the marketing mix?

Answer 14

Price, place, promotion,product

Question 15

Whats a product portfolio

Answer 15

The collection of products that a firm produces

Question 16

Whats the DOG in the boston matrix?

Answer 16

Has a low market share in a low growth market

Question 17

Whats a cash cow in the bostom matrix

Answer 17

Has a high market share in a low growth market

Question 18

Whats a question mark in the boston matrix?

Answer 18

Has a low market share in a fast growth market

Question 19

Whats a star in the boston matric

Answer 19

Has a high market share in a fast growth market

Question 20

Whats the product life cycle?

Answer 20

Shows how the sales of a product have changed over time

Question 21

What are extension strategies?

Answer 21

Attempts to mantain the sales of a product and prevent it from entering the decline stage of a product life cycle

Question 22

What is price skimming?

Answer 22

Setting a high price for a product when it first enters the market

Question 23

What is penetration pricing?

Answer 23

A new product at a low price to achieve fast sales

Question 24

What is competitive pricing

Answer 24

Matching the prices to your competitor

Question 25

Whats a Loss leader

Answer 25

A product sold at a loss in the hope that a customer will buy other items from the business where they make profit

Question 26

What is cost plus pricing?

Answer 26

Where products are priced covering all the costs to the retailer and adding a percentage on top

Question 27

What are promotional activities

Answer 27

The different ways a firm tries to communicate with its customers

Question 28

What are sales promotions

Answer 28

Short term incentives to encourage customers to buy

Question 29

What is advertsising

Answer 29

Involves paid for communications

Question 30

What are the factors that influence the promotional mix

Answer 30

Target audience,competitors actions, nature of the market and product, finance

Question 31

What is a wholesaler

Answer 31

Buy in large quantities from a producer and sell to retailers

Question 32

What is the distribution channel

Answer 32

How the ownership of a product passes from the producerto the final customer

Question 33

What is direct marketing?

Answer 33

When there is a direct limk from the producer to the customer with no intermediaries

Question 34

Whats an intermediary

Answer 34

A link in the distribution chain between the producer and the customer