unit 2 aos 2 marketing a business

Question 1

marketing

Answer 1

is the process of implementing strategies to price, promote, and distribute products to current and potential customers.

Question 2

market research

Answer 2

is the process of collecting information relating
to customer needs and preferences.

Question 3

target market

Answer 3

A target market is a specific group of consumers that a business aims its marketing efforts towards

Question 4

customer data base

Answer 4

is a group of consumers who continuously purchase goods and services from a business.

Question 5

customer profile

Answer 5

is a specific description of the type of person a business is selling to, including
their demographic, psychographic, and geographic characteristics

Question 6

Business objectives

Answer 6

are the goals a business intends to achieve.

Question 7

how can a business successfully achieve its objectives

Answer 7

By identifying and meeting the needs of its customer base, a business can increase customer satisfaction, which can lead to the achievement of business objectives.

Question 8

how can a business identify their customer data base

Answer 8

A business can identify its customer base by creating a customer profile, which is a specific description of the type of person a business is selling to, including their demographic, psychographic, and geographic characteristics.

Question 9

how can a business improve their brand identity

Answer 9

By delivering high-quality customer service, a business can improve customer satisfaction, enhance its reputation, and help establish a strong brand identity.

Question 10

how can a business expand its customer data base

Answer 10

Marketing campaigns can be used by businesses to inform customers of their goods and services to new customers, as well as encourage future sales by existing customers. This can help a business establish a strong customer base and improve its brand identity.

Question 11

define corporate culture

Answer 11

Corporate culture is the shared values and beliefs of a business and its employees

Question 12

The internal environment

Answer 12

involves factors within a business that a business has control over.

Question 13

brand identity

Answer 13

is the unique set of values a business seeks to portray to its customers.

Question 14

operating factors

Answer 14

are the primary external factors impacting a business which it has some control over.

Question 15

Marco factors

Answer 15

the major uncontrollable, external forces (economic, demographic, technological, natural, social and cultural, legal and political) which influence a firm’s decision making and have an impact upon its performance.

Question 16

The relationship between marketing, establishing a customer base and business objectives

Answer 16

the business objective of Increasing sales can be achieved by targeting a business’s customer base as this can increase the number of customers who will make repeat purchases, subsequently increasing the number of sales.

Question 17

How marketing and establishing a customer base can achieve the business objective of to make a profit

Answer 17

Marketing strategies focused on targeting those within the business’s customer base can establish loyal customers who purchase products regularly. This can increase sales revenue and allow the business to increase its overall profit.

Question 18

The effect of customers on a business’s customer base and brand identity

Answer 18

effect on customer base
- Customers are likely to continue purchasing from a business that treats them well and values their time and money, increasing the loyalty of the customer base.

effect on brand identity
- Businesses that are honest and treat customers well can improve customer perceptions of the business.

Question 19

Customer value

Answer 19

is the satisfaction a consumer feels after purchasing
a product.

Question 20

how economic factors affect business marketing

Answer 20

By understanding and analysing economic conditions, a business can determine the marketing strategies that it will implement to attract and retain customers. During periods of strong economic growth, disposable income is high, meaning consumers are more inclined to purchase goods or services that are offered by a business. This provides an opportunity for businesses to expand their customer base

Question 21

how technological factors affect business making

Answer 21

Technological developments can increase a business’s ability to market its products. For example, social media can provide seamless communication and rapid response times when handling customer enquiries, improving overall customer satisfaction and increasing the likelihood of purchasing from the business again.

Question 22

negatives of how technology affects business marketing

Answer 22

However, technological advancements
can also cause a business’s products to become outdated, which may lead to fewer customers returning to purchase a good or service, as they seek products with the most up-to-date features. Therefore, businesses must be aware of changes in technology and update their products in order to enhance their marketing strategies and maintain a strong customer bas

Question 23

negatives of economic factors on business marketing

Answer 23

On the other hand, when economic growth and disposable income levels are low, consumer confidence decreases, meaning individuals are less likely to spend their money. Consequently, a business may implement fewer marketing strategies and emphasise its lower prices to attract price-conscious customers.

Question 24

why a business should consider legal factors when marketing (positives)

Answer 24

it is crucial for a business to consider legal factors across all its activities and be aware of regulatory bodies and legislation that affect its operation. A business that complies with its legal obligations and markets itself in an ethical, socially-responsible manner is more likely
to establish a loyal customer base and positive brand identity

Question 25

why a business should consider legal factors when marketing (negative)

Answer 25

failure to comply with legal regulations can result in negative consequences for a business, including fines, store closure, and negative brand identity. If customers believe a business is not adhering to its legal requirements, they may choose to purchase from competitors, which negatively affects the business’s ability to maintain its customer base and profitability.

Question 26

why a business should consider social factors when marketing

Answer 26

a business should consider these factors when developing its marketing strategies to ensure they are targeting consumer wants and needs. For example, many businesses have been prompted to emphasise their commitment to sustainability through their marketing strategies, as societal concern for the environment has increased

Question 27

Market research

Answer 27

Market research is the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry.

Question 28

market research analyst

Answer 28

A market research analyst is a marketing specialist who gathers and investigates customer information.

Question 29

what is valuable information that can be obtained from market research

Answer 29

Potential market changes and new trends, as Businesses can identify what competitors are offering in the market and new opportunities which have not been implemented to attract customers through market research

Question 30

methods used to collect data (survey)

Answer 30

Survey is a research method that involves asking questions to collect data from a group of people.

Question 31

methods used to collect data (secondary data)

Answer 31

Secondary data is information that has already been collected for another purpose.

Question 32

Market dimensions

Answer 32

Market dimensions are an indication of the total number of potential customers who could purchase a product from a business in a particular market.

Question 33

niche market

Answer 33

A niche market is a small, specialised market for a particular product.

Question 34

mass market

Answer 34

mass market is a large market for goods and services produced on a substantial scale, for a significant number of consumers.

Question 35

Market segmentation

Answer 35

Market segmentation is the process of dividing a market into different groups of consumers that share similar characteristics.

Question 36

target market

Answer 36

A target market is a specific group of consumers that a business aims its marketing efforts towards.

Question 37

primary target market

Answer 37

A primary target market is a business’s main target market, to which it will exhaust most of its marketing efforts.

Question 38

secondary target market

Answer 38

A secondary target market is a smaller segment of the market that is the second-most likely group of customers to purchase a business’s goods or services

Question 39

why is marketing to a specific target market important

Answer 39

focus its marketing efforts on consumers who are likely to engage and respond to the product’s promotional material. focus its marketing efforts on consumers who are likely to purchase the business’s product.

Question 40

Consumer behaviour

Answer 40

Consumer behaviour is the actions of those who purchase goods and services for consumption.

Question 41

Factors influencing the purchasing decisions of consumers

Answer 41

Social factors * Peer groups * Family and friends * Social class

Question 42

Consumer trends

Answer 42

Consumer trends are developed patterns in consumer behaviours, attitudes, and values

Question 43

product

Answer 43

A product is a good or service that is offered to consumers to satisfy a need or want.

Question 44

tangible and non tangible

Answer 44

A tangible product is a physical product that has the ability to be touched and stored. An intangible product is a non-physical product that cannot be touched or stored.

Question 45

Marketing considerations relating to the product element of the marketing mix

Answer 45

packaging Well-designed packaging can help improve a consumer’s perception of a product, as it can enable a business to stand out from competitors and can draw a consumer’s attention to the product.

Question 46

Price

Answer 46

Price is the amount that a customer pays for a good or service.

Question 47

identify and evaluate a beneficial price strategy

Answer 47

Competition-based pricing refers to when a business sets a price similar to its competitors’ price. advantage - A business is likely to generate sales as customers are already purchasing the product at similar prices. disadvantage -As a business’s product is similar to competitors, the business will need to compete on variables other than cost, such as product quality or features.

Question 48

Penetration pricing

Answer 48

A business sets a lower price than competitors when first entering a market in order to quickly gain market share.

Question 49

place

Answer 49

Place is an element of the marketing mix relating to how a business distributes its product to customers

Question 50

identify and describe a distribution channel

Answer 50

Producer to customer (direct) Products are sold directly from the business to consumers.

Question 51

describe the distribution channel Producer to retailer to customer (indirect)

Answer 51

A producer sells its products to a retailer who then sells the products to customers.

Question 52

describe the distribution channel Producer to wholesaler to retailer to customer (indirect)

Answer 52

A producer sells large quantities of a product to a wholesaler, who then sells the products to retailers, where customers can purchase them.

Question 53

Promotion

Answer 53

Promotion is the marketing communications used by a business to inform, promote, and remind its target market about its product.

Question 54

a Promotional strategy that a business can use to form its promotional mix

Answer 54

Advertising Advertising involves creating a message to publicly promote a business’s products.

Question 55

people

Answer 55

are the individuals that influence a customer’s perception of a business and its products.

Question 56

Physical evidence

Answer 56

is the environment in which the business and customer interact.

Question 57

Elements of a business’s physical evidence

Answer 57

facilities, interior design, ambience, evidence of a service being preformed, digital word.

Question 58

process

Answer 58

The process is the procedure set in place throughout the entire customer purchasing experience at a business.

Question 59

methods to improve customers purchasing experience

Answer 59

Customers should be provided with a variety of ways to purchase the product, such as cash, EFTPOS, or ‘buy now pay later’ payment methods

Question 60

the product lifecycle

Answer 60

The product life cycle is a series of stages that a product will pass through from the moment it is introduced to the market until it becomes obsolete or replaced.

Question 61

introduction phase of the product lifecycle

Answer 61

The introduction stage is the first stage of the product life cycle, where the product is initially introduced to the market. At this point, sales and market share are low as customer demand for the product needs to be built.

Question 62

marketing mix

Answer 62

A company's marketing mix is the combination of products, pricing, places and promotions it uses to differentiate itself from the competition

Question 63

growth phase of the product lifecycle

Answer 63

The second stage of the product life cycle is the growth stage. During this stage, customers have accepted the product, resulting in rapid sales growth.

Question 64

maturity phase of the product lifecycle

Answer 64

The third stage of the product life cycle is the maturity stage. During the maturity stage, a business will reach its peak level of product sales before they begin to plateau due to market saturation.

Question 65

decline phase of the product lifecycle

Answer 65

The fourth stage of the product life cycle is the decline stage. During the decline stage, a business will experience a steady decrease in sales as its product becomes obsolete or outdated.

Question 66

extension phase of the product lifecycle

Answer 66

a business can implement strategies to lengthen the product life cycle. There are a range of extension strategies that a business can pursue to prevent its product from becoming obsolete. This allows a business to reinvigorate the product life cycle and re-establish its products amongst its competitors

Question 67

Customer relations

Answer 67

Customer relations is the way a business creates, builds, and maintains customer relationships.

Question 68

Quality customer service

Answer 68

Quality customer service is a business consistently going above and beyond expected performance to ensure customers are satisfied with their experience.

Question 69

Features and the value of quality customer service

Answer 69

feature- Process of dealing with customer complaints, refunds, and returns -A business should have policies in place to promptly respond to customers who are dissatisfied with the goods or services they receive. value - Customers feel their concerns have been addressed and are likely to come back to the business.

Question 70

Customer loyalty

Answer 70

are marketing initiatives that enable customers to gain benefits for frequently purchasing from a business.

Question 71

Features and value of a customer loyalty program

Answer 71

feature - Rewards offered A business should provide customers with various rewards, such as discounts, free shipping, exclusive access to new products, or a free birthday gift. value - Customers feel recognised for their frequent purchases and are encouraged to make repeat purchases.

Question 72

Technological developments

Answer 72

Technological developments are the invention and innovation of tools that solve problems and enhance processes. -Technological developments that are widely used by businesses include social media, email marketing, search engine optimisation, artificial intelligence, data analytics, and management of data.

Question 73

Social media

Answer 73

Social media is the online platforms that can be used to connect with others and share content.

Question 74

Advantages and disadvantages of social media

Answer 74

adv. Businesses can reach a wider audience and increase their brand awareness. Businesses can easily connect, listen, and respond to customers, improving customer satisfaction. dis. Social media may be difficult to use for some age groups, such as elderly people. A business may receive negative comments on its social media posts which may damage its reputation.

Question 75

Email marketing

Answer 75

Email marketing is the process of sending personalised electronic messages to existing customers to promote a business’s goods and services.

Question 76

Advantages and disadvantages of email marketing

Answer 76

adv. Emails can be personalised to suit the individual wants and needs of customers. The business can send emails containing surveys or questionnaires to collect customer feedback and improve its goods and services dis. It can be time-consuming for the business to design and implement the campaign. It can be expensive for the business to implement as additional employees may need to be hired to manage the emails.

Question 77

Search engine optimisation

Answer 77

Search engine optimisation is a process used by businesses to ensure their website ranks higher in search results when customers search for goods or services related to the business online.

Question 78

Advantages and disadvantages of search engine optimisation

Answer 78

adv. Websites that rank high on search engine result pages are often considered to be Search engine optimisation will likely save a customer’s time in finding the business online as it is likely to be one of the first matches with a customer’s search dis. Businesses that partake in search engine optimisation have to compete with the rest of the internet Businesses that pay for a higher website rank will receive priority on search results pages compared with businesses that solely focus on search engine optimisation.

Question 79

Advantages and disadvantages of artificial intelligence

Answer 79

adv. Artificial intelligence reduces the likelihood of a data breach by avoiding human errors. * Customers who receive personalised messages may feel valued by the business, improving its reputation. dis. Software is not always reliable and may inaccurately interpret the data that is collected. * Customers may prefer to speak to a human rather than receive automated responses from chatbots.

Question 80

Data analytics

Answer 80

Data analytics is the process of examining information that has been collected by businesses in order to draw conclusions and make effective decisions.

Question 81

Advantages and disadvantages of data analytics

Answer 81

adv. Businesses can send personalised messages to customers to ensure their individual needs are met, enhancing the customer experience. A customer’s time searching for products may be saved where the item they intended to purchase is recommended to them. dis. It can be time consuming to analyse the data that has been collected. Customers may become annoyed if they receive too many advertisements or product recommendations.

Question 82

Management of data

Answer 82

is the practice of collecting, organising, using, and storing data securely so businesses can use this information to make effective decisions.

Question 83

Advantages and disadvantages of management of data

Answer 83

adv. The business can accurately advertise goods and services to customers by ensuring the correct information is collected and used. The business can respond quickly to changing customer wants and needs due to receiving reliable and up-to-date data. dis. It can be time consuming to constantly maintain and update data management systems. The software and hardware used to collect and organise data can be expensive.

Question 84

Public relations (PR)

Answer 84

Public relations (PR) is communicating an intended message to the public to create and sustain a positive business reputation.

Question 85

The relationship between public relations and business objectives

Answer 85

The main goal of public relations is to improve a business’s brand image and public reputation, as poor public relations can sometimes result in negative business performance. By meeting public relations goals, a business can enable the achievement of its overall business objectives (increasing sales)

Question 86

Planned public relations

Answer 86

is a business proactively communicating intended messages to various publics.

Question 87

Types of planned public relations strategies

Answer 87

Social media is using online platforms, such as Instagram and Twitter, to communicate a message to both internal and external publics. Social media enables businesses to respond quickly to issues and promote their brand in a cost-effective manner. aim Businesses use social media to directly inform internal and external publics of new business changes or activities and develop a positive image.

Question 88

Maintaining a positive relationship with customers

Answer 88

A business’s reputation is often influenced by customer perceptions. Therefore, it is crucial for businesses to maintain positive relationships with their customers and continually develop and strengthen these connections. By doing so, businesses can influence customer purchasing decisions, encouraging them to buy new products, and establish a loyal customer base that provides a reliable source of revenue and financial stability.

Question 89

Implications of not maintaining a positive relationship with customers

Answer 89

Failing to maintain a positive relationship with customers can be detrimental to a business and threaten its long-term survival. Not only can a business endure a loss of customers but, depending on the intensity of the crisis, its reputation may be irreparably damaged, making it even more difficult for the business to recover or attract customers.

Question 90

Advantages and disadvantages of public relations strategies

Answer 90

adv. Engaging in activities that benefit the community may improve the business’s reputation. Can reach a large audience, particularly if the media spreads intended messages. dis. Business information or news may not be picked up by the media, reducing exposure to the public. The business will likely have no control over how individuals receive the message.

Question 91

Corporate social responsibility (CSR)

Answer 91

Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

Question 92

CSR considerations in marketing

Answer 92

Materialism A business may use marketing strategies that persuade consumers into unnecessarily believing they should purchase a product. These strategies aim to create artificial needs amongst customers, resulting in materialism. A well-known smartphone company may persuade consumers to buy a new mobile phone to be perceived as trendy despite their old phone still working.

Question 93

Green marketing

Answer 93

Green marketing is an advertising strategy that involves highlighting the environmental benefits of a good or service.

Question 94

Advantages and disadvantages of green marketing

Answer 94

adv. Engaging in green marketing will allow businesses to gain access to new markets and a larger audience as eco-friendly consumers are likely to be interested in a business’s offerings. * An increase in customers may allow a business to compete with other businesses and gain a competitive advantage. dis. It may be considered greenwashing if the product is incorrectly advertised as being sustainable or eco-friendly by the business. It may be time-consuming to develop a marketing mix to effectively portray a business’s environmental initiatives.

Question 95

Customer privacy

Answer 95

is the administration and protection of sensitive, personal information that customers provide during their interactions and transactions with a business.

Question 96

Advantages and disadvantages of protecting customer privacy

Answer 96

adv. The business’s public perception will likely improve as the business is committed to protecting customer data and preventing data breaches. * If the business has greater customer protection policies compared to competitors, this may lead to an increase in customers. dis. Businesses are unable to predict data breaches, meaning they could happen despite the attempts to protect customer information. Employees may feel overwhelmed by new security processes and software that are introduced to protect customer privacy.

Question 97

one reason data analysis and interpretation is important

Answer 97

One reason data analysis and interpretation is important is that it enables businesses to transform their collected data into relevant information to make effective decisions and be used to solve a business problem.

Question 98

consumer behaviour

Answer 98

Consumer behaviour is the actions of those who purchase goods and services for consumption

Question 99

Consumer trends

Answer 99

Consumer trends are developed patterns in consumer behaviours, attitudes, and values.

Question 100

crisis public relations

Answer 100

Crisis public relations is a business reactively communicating to various publics in response to an issue that can negatively affect its reputation.