Unit 3- Marketing

Question 1

Marketing definition

Answer 1

Identifying, anticipating and satisfying customer wants in a way that delights the consumer and also meets the needs of the organisation

Question 2

Market definition

Answer 2

A place where buyers and sellers meet.
Refers to generic goods or services eg. Supermarket, cereals, cars etc..

Question 3

How is Market size measured

Answer 3

Sales volume and sales value

Question 4

Market share definition

Answer 4

The proportion or % of total sales of a product or service achieved by a firm or a specific brand of product.

Question 5

Market share equation

Answer 5

Sales of one product or brand or company / total sales in market x100

Question 6

Market growth definition

Answer 6

The % in sales (value or volume) of a generic product or service over a period of time

Question 7

Market growth equation

Answer 7

Market size in year - market size in previous year / market size in previous year x100

Question 8

Factors that influence market growth (5)

Answer 8

Economic growth
Changes in taste
Social change (COVID)
Fashion
Type of product (eg luxury products inferior products etc…)

Question 9

Sales growth equation

Answer 9

Sales in the year - sales in previous year / sales in previous year x100

Question 10

Brand loyalty definition

Answer 10

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

Question 11

Marketing objectives (5)

Answer 11

Increase sales volume
Increase sales value
Market growth
Increase market share
Build brand loyalty

Question 12

Market research definition

Answer 12

The systematic objective collection and analysis of data about a particular target market

Question 13

Primary research definition

Answer 13

Research data that is collected first hand for a specific research purpose

Question 14

Examples of primary research

Answer 14

Observation
Online surveys
Interviews
Focus groups
Test marketing

Question 15

Primary research advantages

Answer 15

Kept private- not publically available
More detailed insights into customer views
Directly focused to research objective

Question 16

Primary research disadvantages

Answer 16

Response rates may be low
Time consuming
Costly to obtain
Risk of survey bias

Question 17

Secondary research definition

Answer 17

Research that uses data that already exists and has been collected by someone else for another purpose

Question 18

Examples of secondary research

Answer 18

Census
The internet
Magazines
Competitor websites

Question 19

Secondary research advantages

Answer 19

Often free
Easy to obtain
Quick to access and use
Good source of market insights

Question 20

Secondary research disadvantages

Answer 20

Specialist reports are often expensive
Not tailored and specific to business
Can quickly become out of date

Question 21

Qualitative market research definition

Answer 21

Collection of information about the market based on subjective factors e.g. opinions and reasons

Question 22

Qualitative MS advantages

Answer 22

Greater insight to what needs to be done to meet costumer needs
Highlights issues the business was not aware of allowing it to maximise success

Question 23

Qualitative MS disadvantages

Answer 23

Hard to analyse and compare
Expensive

Question 24

Quantitative market research definition

Answer 24

Collection of information about the market based on numbers

Question 25

Quantitative MS advantages

Answer 25

Easier to identify trends and compare results
It summarises data in a concise and meaningful way

Question 26

Quantitative MS disadvantages

Answer 26

Doesn’t show the “why”

Question 27

Sampling definition

Answer 27

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

Question 28

Types of sampling (3)

Answer 28

Random- everyone has an equal chance of being chosen
Quota- people are picked who fit into a category to get opinions from the people the product is directly targeted at.
Stratified- researchers divide subjects in subgroups called strata based on characteristics that they share (e.g race, gender etc..) and once divided each subgroup is randomly sampled.

Question 29

Confidence intervals

Answer 29

Used to assess the reliability of sampled data when trying to forecast figures such as sale levels (used to try understand the results of a survey)

Question 30

Confidence levels

Answer 30

The degree to which statistics are a reliable predictor of actual events

Question 31

Factors that influence the confidence levels (3)

Answer 31

Sample size
Population size
% of sample choosing a particular answer (if there is a high or low % there is less margin of error so confidence levels will be low)

Question 32

Extrapolation

Answer 32

Use of past data to establish a trend which is then projected into the future

Question 33

Extrapolation advantages

Answer 33

Quite common for past trends to continue
Quick and cheap
Simple method
Not much data needed

Question 34

Extrapolation disadvantages

Answer 34

Unreliable if there is a significant fluctuation in historical data
Ignores qualitative factors
Assumptions doesn’t always happen

Question 35

Price Elasticity of Demand

Answer 35

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

Question 36

Price Inelastic

Answer 36

The % change in demand is smaller that % change in price.
Demand will hardly change if price increases
(-0.2, -0.5, -0.8)

Question 37

Price Elastic

Answer 37

% change in demand is higher than the % change in price.
Demand will change significantly if price increases
(-1.2, -1.5, -1.7)

Question 38

Factors that influence the PEoD (7)

Answer 38

Habit/ addiction
Availability of substitutes
Brand loyalty
Consumer income
Necessity
Proportion of income spent on a product
Time (people may have the time to shop around to find the best prices so inelastic in short term and elastic in long term)