Unit 3

Question 1

What is marketing

Answer 1

The communication between a business and its(potential) customers in order to create and encourage sales

Question 2

What is the purpose of marketing

Answer 2

To increase sales by identifying,anticipating and satisfying customer,this requires profitability

Question 3

What is a market

Answer 3

Where buyers and sellers transact

Question 4

What are the 2 types of markets

Answer 4

Retail(physical)
E-commerce(online)

Question 5

What are examples of markets

Answer 5

Food and beverage
Tech
Clothing
Health care

Question 6

What are objectives

Answer 6

Targets set by the marketing function

Question 7

What are some key marketing objectives

Answer 7

Sales growth(percentage change)
Sales volume
Sales value (£)
Launching new products
Entering new markets

Question 8

What is the process of marketing objectives

Answer 8

1.Define the main goal
2.Outline the objectives
3.Break out objectives into tasks
4.Tie tasks to dates

Question 9

What are the key marketing measures

Answer 9

Market size
Market growth
Market share

Question 10

What is FMCG

Answer 10

Fats moving consumer goods

Question 11

What is the role of market research

Answer 11

Competitor analysis
Identify trends in the market
Aid pricing strategies
Meeting consumer needs
Ideas for development
Customer feedback

Question 12

What is quantitative data

Answer 12

Facts and figures

Question 13

What is qualitative research

Answer 13

Customers thoughts and feelings on a product

Question 14

What is primary research

Answer 14

Data collected first hand for a specific business

Question 15

What is secondary data

Answer 15

Looking at data that already exists

Question 16

What are some primary research methods

Answer 16

Surveys/questionares
Observations
Focus groups

Question 17

What are some positives of surveys/questionares

Answer 17

Reach a large target audience
Mix of qualitative and quantitative responses
Can usually gather much info from large sample

Question 18

What is a negative of surveys/questionares

Answer 18

Depends on who’s writing the questions

Question 19

What are positives of observations

Answer 19

Real world experience

Question 20

What are negatives of observations

Answer 20

Small sample size
Time consuming

Question 21

What are negatives of focus groups

Answer 21

Can be bias because they’re being paid to take part
Can be pressured by other people in the group

Question 22

What is a positive of focus groups

Answer 22

Helps avoid risk by getting feedback

Question 23

What are types of secondary market research methods

Answer 23

Newspapers
Internet
Government market research reports
Published reports by industry publications

Question 24

What is the formula for market share

Answer 24

Company’s revenue (divided )entire market revenue x100

Question 25

What is a confidence interval

Answer 25

Gives percentage probability that an estimated range of possible values in fact includes the actual values being estimated It’s a range of outcomes

Question 26

What is correlation

Answer 26

Occurs when there is a relationship/link between 2 factors

Question 27

What affects sales

Answer 27

Pricing Share holders Quality State of economy Marketing activity Seasonal events

Question 28

What is a positive correlation

Answer 28

Relationship of 2 variables where they increase or decrease together

Question 29

What is a negative correlation

Answer 29

Relationship between 2 variables that where in opposite directions A increases, B decreases

Question 30

What is extrapolation

Answer 30

Use of trends from historical data to forecast the data

Question 31

What are pros of extrapolation

Answer 31

Aids decision making Useful method to help predict future The more historic data the more reliable it is for the future Allows businesses to make informed business decisions

Question 32

What are cons of extrapolation

Answer 32

External factors such as rivals and economy Validity of data Can be bias

Question 33

What is the value of tech gathering data

Answer 33

Provides faster communication Makes forecasting easier Enables targeted sales messages Relies on the business having right data in the first place

Question 34

What is elasticity of demand

Answer 34

Measures responsiveness of demand to a change in price or income Means it’s price sensitive

Question 35

What is price elasticity

Answer 35

How significantly price demand changes when price changes

Question 36

What is income elasticity

Answer 36

How significantly demand changes when income changes

Question 37

What is the calculation for PED

Answer 37

%change in demand➗%change in price

Question 38

Is elasticity is greater than 1 it means

Answer 38

It is deemed as price elastic

Question 39

If elasticity is less than 1 it means the price is

Answer 39

Inelastic

Question 40

What factors affect PED

Answer 40

Strength of brand Whether there are reasonable substitutes Whether product is a necessity or not

Question 41

What is the formula for YED

Answer 41

%change in the demand➗%change in income

Question 42

What are necessities

Answer 42

Normal everyday goods and are in an elasticity of demand of between 0 and demand is rising but less proportionately to income

Question 43

What is a luxury good

Answer 43

Good and services that have an income elasticity of above 1 If demand rises more than proportionally to a change in income

Question 44

What is an inferior good

Answer 44

Negative income in elasticity of demand YED is negative because increase in income means a fall in demand This means demand falls as income rises E.g low priced label foods