Unit 3 - Decision making to improve marketing performance

Question 1

Relationship marketing

Answer 1

An approach to marketing in which a company seeks to build long-term relationships with its customers by providing consistent satisfaction. It focuses on customer retention rather than one off sales

Question 2

Marketing objective

Answer 2

A target set for the marketing function

Question 3

Market share

Answer 3

The sales of one brand or business as a % of total market sales in a given period

Question 4

Brand loyalty

Answer 4

A measure of the degree of attachment that a consumer has for a particular brand

Question 5

Market size

Answer 5

The volume of sales of a product

Question 6

Confidence level

Answer 6

The probability that the research findings are correct

Question 7

Sampling

Answer 7

Gathering data from a group of respondents whose views or behaviour should be representative of the target market as a whole

Question 8

Price elasticity of demand

Answer 8

Measures how responsive demand is to changes in the price

Question 9

Big data

Answer 9

Refers to large and complex data sets. These have been difficult to analyse in the past but improvements in technology is making the use of big data more feasible

Question 10

Extrapolation

Answer 10

Using previous patterns of numerical data in order to predict values in the future

Question 11

Niche marketing

Answer 11

Focuses on a particular segment of a large market

Question 12

Mass marketing

Answer 12

This approach aims to provide products that meet some of the needs of a large proportion of the market

Question 13

Market segments

Answer 13

The groups of similar needs and wants within a market

Question 14

Marketing mix

Answer 14

The combination of marketing choices that can be used by a business to influence consumers to buy products

Question 15

Product life cycle

Answer 15

A model that shows the sales of a product over its life

Question 16

Boston matrix

Answer 16

This model analyses all of a firm’s products in terms of their market share and the growth of the market

Question 17

Product portfolio analysis

Answer 17

Examines the market position of all of the products of a business

Question 18

Penetration pricing

Answer 18

A strategy in which low prices are set to break into market or to achieve a sudden increase in the market share

Question 19

Price skimming

Answer 19

A strategy in which high price is set at the launch of a new product

Question 20

Dynamic pricing

Answer 20

This occurs when prices are changing rapidly in response to changing demand

Question 21

E-commerce

Answer 21

The buying and selling products electronically through the internet

Question 22

Extension strategy

Answer 22

Method used to lengthen the life cycle of a product by preventing or delaying it from reaching the decline stage of the product life cycle