Unit 3 (Marketing)

Question 1

The role of marketing

Answer 1

The function of a business that identifies, anticipates, creates and satisfies consumer wants and needs profitably.

Question 2

Consumer base

Answer 2

The group of customers a business sells its products to.

Question 3

Customer

Answer 3

An individual or business that buys goods and services from a business.

Question 4

Consumer

Answer 4

The final user of a product

Question 5

Market

Answer 5

All customers and consumers who are interested in buying a product and the financial resources to do so

Question 6

Industrial Market

Answer 6

Markets for goods and services bought by the other business in their production process

Question 7

Target market

Answer 7

Individuals or organisations identified by the business as the customer or consumers of their products

Question 8

Consumer Markets

Answer 8

Markets for goods and services bought by the final consumer

Question 9

Business environment

Answer 9

The combination of internal and external factors that influence the operations of a business

Question 10

Niche Market

Answer 10

A small, usually specialised, segment of a much larger market

Question 11

Mass Marketing

Answer 11

Selling the same product to the whole market

Question 12

Free trade

Answer 12

No barriers exist that might prevent trade between different countries

Question 13

Market segment

Answer 13

A part of the whole market in which consumers have specific characteristics.

Question 14

Market segmentation

Answer 14

Dividing the whole market into segments by consumer characteristics and then targeting different products to each segment.

Question 15

Geographic segmentation

Answer 15

Dividing consumers in the market by geographic area

Question 16

Demographic segmentation:

Answer 16

Dividing consumers in the market by factors such as age, gender, income, ethnic background and social class.

Question 17

Primary research

Answer 17

The collection of original data. Involves direct contact with potential or existing customers

Question 18

Secondary research

Answer 18

The use of information that has already been collected and is available for use by others.

Question 19

Brand

Answer 19

A brand is an image or symbol that distinguishes a product from competitors products.

Question 20

Product life cycle

Answer 20

Shows the stages that products go through from development to withdrawal from the market

Question 21

Price elasticity of demand

Answer 21

Measures how much demand for a product changes if there is a change in price

Question 22

Price

Answer 22

The amount paid by the customer to the supplier when buying a good or service

Question 23

Demand

Answer 23

The quantity of goods and services consumers are willing to buy.

Question 24

Price inelastic demand

Answer 24

The percentage change in demand is less than the percentage change in price . Meaning the demand for products is NOT very responsive to changes in price. E.g products that are seen as more luxurious.

Question 25

Price elastic demand

Answer 25

The percentage change in demand is greater than the percentage change in price. Meaning the demand for products IS very responsive to change in price. E.g products needed for every day like (bread, milk, petrol.

Question 26

what are the 6 stages of the product life cycle?

Answer 26

Development,introduction, growth, maturity, saturation,decline

Question 27

Wholesaler

Answer 27

A business that buys products in bulk and from producers and then sells them to retailers.

Question 28

Retailer

Answer 28

A shop that sells goods and services to the final consumer

Question 29

Middlemen

Answer 29

Intermediaries in the channel of distribution (e.g wholesaler, retailer)

Question 30

Direct selling

Answer 30

Product that is directly sold to the consumer from the producer without the use of any middlemen

Question 31

Promotion

Answer 31

Marketing activities are used to communicate with customers and potential customers to inform and persuade them to buy a product

Question 32

Advertising

Answer 32

Paid for communication with consumers which uses printed and visual media with the aim of informing and persuading customers to buy

Question 33

Informative adveritising

Answer 33

Information about the product is communicated to customers to create product awareness and to attract interest

Question 34

Persuasive advertising

Answer 34

Communication with customers aimed at getting them to buy a product rather than a competitor’s product

Question 35

Below the line promotion

Answer 35

Promotion that isn’t paid for communication but uses incentives to encourage the consumer to buy

Question 36

Sales promotion

Answer 36

Incentives used to encourage short term increases in sales or repeat purchases

Question 37

E-commerce

Answer 37

The use of the internet and other technologies used by businesses to market and sell goods and services to customers.

Question 38

Product oriented

Answer 38

focuses on its product or service’s quality and performance.