Unit 3- Marketing

Question 1

What is marketing?

Answer 1

The anticipation and satisfaction of consumers’ wants in a way that delights consumes and also meets the needs of the organisation

Question 2

What are the influencing factors of market growth?

Answer 2

Economic growth 
Nature of the product 
Changes in taste
Social changes 
Fashion

Question 3

What is brand loyalty and branding?

Answer 3

Brand loyalty- A measure of the degree of attachment that a consumer has for a particular brand of product
Branding- A name, sign, symbol, design or slogan linked to a [articular product or service in order to differentiate it from its competitors

Question 4

What is the net promoter score?

Answer 4

A measure of brand loyalty
Promotors= 9/10
Passives= 7/8
Detractors= 0-6

Question 5

What are the benefits for setting clear marketing objectives?

Answer 5

Consistent decision making 
Enables a measure of success 
Helps to instil a team ethos
Enables a review of strategy
Helps motivate staff

Question 6

What are the problems with setting clear marketing objectives?

Answer 6

External changes can undermine objectives 
Internal change 
Conflict of objectives 
Insufficient resources 
Too ambitious?

Question 7

Why conduct market research?

Answer 7

Customers differ in different ways:
Benefits they want 
Amount they are willing or able to pay
Media they see
Quantities they pay 
Time and place they pay

Question 8

What is market mapping?

Answer 8

A technique that analyses markets by looking at the features that distinguish different products and firms
Helps identify the gap in the market

Question 9

What are the 3 main sampling methods?

Answer 9

Random sampling- each member of the population with equal chance of being chosen
Quota sampling- group of selected respondents who share a common feature in proportion with their % in the population as a whole
Stratified sampling- selected according to a common feature but from a random unit of the population

Question 10

What is a confidence interval?

Answer 10

The plus or minus figure used to show the accuracy of statistical results arising from sampling

Question 11

What are the influencing factors of a confidence interval?

Answer 11

Sample size
Population size
% of population choosing a particular answer

Question 12

What is the price elasticity of demand?

Answer 12

The degree to which the quantity demanded of a good or service is affected by a change in price

Question 13

What are the factors affecting PeD?

Answer 13

Necessity 
Habit 
Availability of substitutes
Brand loyalty
Proportion of income spent on product
Income of consumers
Time taken to change

Question 14

What are the limitations of YeD?

Answer 14

Can be inaccurate or misleading- assumes other things remain equal
Changes in the market affecting demand- consumer taste, new competitors, technological change
Rival reaction
Different consumer reactions

Question 15

What are the types of market segmentation?

Answer 15

Demographic- age, gender, social class
Geographic- where you live
Income- how much earnt
Behavioural- lifestyle and useage/frequency of purchase

Question 16

What are the advantages of niche marketing?

Answer 16

Less competition
Costs
Small-scale production
Tailor made products 
Targeting customers

Question 17

What are the disadvantages of niche marketing?

Answer 17

Lower profits
Changes in demand
Market entry- larger firms may join the market and squeeze out smaller players

Question 18

What are the advantages of mass marketing?

Answer 18

Large scale production
High revenues
High barriers to entry 
Research and development 
Brand awareness

Question 19

What are the disadvantages of mass marketing?

Answer 19

Fixed capital- high costs in factories and machinery
Chnages in demand
Effects of standardisation- difficult to appeal to individual needs
Competition- vulnerability to foreign competition
Adding value

Question 20

What is the aim of market positioning?

Answer 20

To achieve a unique and beneficial perception of your product/ brand in the customers mind

Question 21

What are the 2 different types of marketing?

Answer 21

Industrial- business to business

Consumer- business to consumer

Question 22

What are the 3 different types of products?

Answer 22

Consumer products- purchased by habit
Shopping products- planned purchase
Speciality products- unique and more selective

Question 23

In the Boston matrix, what is a star?

Answer 23

High market share and high market growth
Enjoy high sales revenue
Attracts competitors into the market
Investment in promotion needed to maintain profit

Question 24

In the Boston matrix. what is a cash cow?

Answer 24

High market share and low market growth
Exist in established markets
Low growth discourages new businesses from entering

Question 25

In the Boston matrix, what is a problem child/ question mark?

Answer 25

Low market share and high market growth
Compete in competitive, fast growing markets
Requires lots of market research and promotion

Question 26

In the Boston matrix, what is a dog?

Answer 26

Low market share and low market growth
Likely to be withdrawn
Can still attract high revenue

Question 27

What are the stages of the product life cycle?

Answer 27

Product development- core products or product proliferation?
Introduction- sales pick up slowly
Growth- Brand recognition
Maturity- introduce extension strategies
Decline- sales of product fall

Question 28

What are the 6 different pricing strategies?

Answer 28

Price skimming- high price
Penetration pricing- low price to break into a market
Price leadership- large firms set a market price that smaller firms follow
Predator pricing- very low price in order to drive other firms out of the market
Loss leaders- low price for its product in order to encourage consumers to buy other products that provide profit for the firm
Psychological pricing- selling a good for £9.99 instead of £10 or provide a limited number of accessories as part of a price package but it is not enough

Question 29

What are the main influences of the pricing decision-

Answer 29

cost of production
Price elasticity of demand
Exchange rates
Regulation
Cost of raw materials

Question 30

What are the aims of promotion?

Answer 30

Attention- increase awareness
Interest- make customers want to find out more
Desire- provide specific reasons for purchasing
Action- encourage the consumer to act and buy

Question 31

What are the 7 different promotional types?

Answer 31

Public relations- publicity
Merchandising - the way a product is displayed
Sales promotions
Direct selling- communicating directly to the consumer
Advertising
Sponsorship
Trade fairs and exhibitions

Question 32

What are the influences on the choice of promotional mix?

Answer 32

Campaign objectives
Costs and budgets
The target market
The balance of promotions in a campaign
Legal factors
External factors

Question 33

What are the 4 main types of place?

Answer 33

The importance of location- convenience, accessibility, cost of access, reputation and localisation
Placement at point of sale
Number of outlets- more locations meaning a higher chance of sale
Distribution channels

Question 34

What are the elements that the impression of a physical environment is based on?

Answer 34

Reception area 
Brochures 
Websites 
Signage
Equipment 
Staff uniform

Question 34

What are the elements that the impression of a physical environment is based on?

Answer 34

Reception area 
Brochures 
Websites 
Signage
Equipment 
Staff uniform

Question 35

What are the influences on the marketing mix?

Answer 35

Finance 
Technology
Market research
The power of buyers and suppliers
Quality of production
Elasticity 
Reputation
Convenience of location

Question 36

What is the key part of the promotional mix?

Answer 36

All have to be equally balanced and they have to support each other
Product may be considered to be key however