Unit 2 Marketing

Question 1

Advertising

Campaign

Answer 1

A series of advertisements to encourage sales, often using different advertising media

Question 2

Advertising Media

Answer 2

The methods by which a business can advertise a product. Includes newspapers, social media, TV, and radio

Question 3

Census Data

Answer 3

Data collected by the Government every 10 years, questioning the entire population on their income, occupation, etc.

Question 4

Competitor

Pricing

Answer 4

When a price is set based on prices charged by competitor businesses for a similar product

Question 5

Cost-Plus Pricing

Answer 5

A pricing method that adds a percentage of profit to the total costs of making a product. This gives the selling price.

Question 6

Decline

Answer 6

The final stage of the product lifecycle When sales are falling as the product or service is seen by customers as being old and they switch to newer products and services

Question 7

Design

Answer 7

An important element in a number of different products, especially where style and technology work together

Question 8

Focus Groups

Answer 8

Selected small groups of customers who give their opinion on

products – a method of market research

Question 9

Growth

Answer 9

Stage 2 in the product lifecycle When sales are growing strongly as the new product or service becomes known

Question 10

Innovation

Answer 10

The improvement on an original idea, which will often involve using new processes. It is closely linked to design, where new ideas can be used in a product due to changes in design

Question 11

Internal Data

Answer 11

Secondary data already within a business based on past performance

Question 12

Interview

Answer 12

A question sheet filled in by the person conducting the interview

Question 13

Introduction

Answer 13

The initial stage of the product lifecycle. When a product or service is first on sale

Question 14

Invention

Answer 14

The introduction of a totally new product or feature

Question 15

Marketing

Answer 15

Finding the needs of consumers and demonstrating how a business fulfils those needs in a way that increases sales

Question 16

Market Data

Answer 16

Information that helps marketing decisions. It includes data on such things as market shares, changes in demand, and the effect of promotions

Question 17

Market Research

Answer 17

The collection of data on consumer habits to help decision-making in marketing

Question 18

Market

Segmentation

Answer 18

Splitting the market for a product into different parts, or segments

Question 19

Market Share

Answer 19

The percentage of total sales of a product that a business has made. If a business sells 20,000 products and the total market for that product is 50,000, then the business has a market share of 40%

Question 20

Maturity

Answer 20

Stage three of the product lifecycle.

When sales are at their highest level

Question 21

P’s of Marketing

Mix

Answer 21

Price, Product, Promotion, and Place

Question 22

Penetration

Pricing

Answer 22

When a price is set lower than the competitor businesses. Often used by new businesses to break into a market. This should only be seen as a short-term strategy

Question 23

Physical

Distribution

Answer 23

The distribution of goods using a physical presence such as a shop or office

Question 24

Point of Sale

Promotions

Answer 24

Includes price reductions, loss leaders, competitions, and free samples

Question 25

Primary Research

Answer 25

Data collected first-hand, often in the form of surveys. Sometimes referred to as field research

Question 26

Product Life Cycle

Answer 26

The life of a product, usually shown as a graph divided up into four stages: introduction; growth; maturity; and decline

Question 27

Promotional

Pricing

Answer 27

Where prices are reduced to give products a boost or to sell off old stock. Most commonly seen as sales in shops

Question 28

Qualitative Data

Answer 28

Data based on opinions of those being asked

Question 29

Quantitative Data

Answer 29

Data collected that is based on facts or numbers, usually easier to analyze than qualitative data

Question 30

Questionnaire

Answer 30

A question sheet filled in by the consumer

Question 31

Research and

Development

Answer 31

Used to help introduce both new and existing products. The research may be testing products in a laboratory or conducting market research by interviewing customers

Question 32

Secondary

Research

Answer 32

The collection of data using research or information provided by others, such as magazines, journals, and the internet. Often called desk research

Question 33

Skimming

Answer 33

Where a new product is more advanced than that of competitors; a price is set high as some customers are willing to pay higher prices to own the newest technology.

Question 34

Target Market

Answer 34

The group of customers to whom a business aims to sell its products. The target market may be other businesses as well as consumers

Question 35

Trials

Answer 35

Used to test whether customers will buy a product