Unit 3- Marketing Peformance

Question 1

The role of marketing

Answer 1

The process of identifying, anticipating (predicting) and satisfying customer needs profitably

Question 2

Market growth equation

Answer 2

(new market size -old market size) / old market size x100

Question 3

Market share equation

Answer 3

Sales / totals market size x100

Question 4

Sales growth equation

Answer 4

Sales this year-sales last year / sales last year x100

Question 5

Market

Answer 5

Place where people buy and sell things

Question 6

Advantages and disadvantages of market maps

Answer 6

+spots gaps in the market
+shows closet competitors
-simplifies too much
-bias (opinion based)

Question 7

How to classify a market :

Answer 7

•geography
•type of product
•seasonality
•development level
•product destination

Question 8

Market research

Answer 8

The process of gathering information about the market

Question 9

Types of sampling

Answer 9

•random
•quota
•stratified

Question 10

Sample

Answer 10

A sample is a group of subjects that had been chosen from a larger group

Question 11

Random sampling

Answer 11

Names picked randomly from list

Question 12

Quota sampling

Answer 12

People are picked who fit a category (ie. Mothers under 30)

Question 13

Stratified sampling

Answer 13

The population is first segmented into subgroups before respondents are randomly selected within that subgroup

Question 14

Correlation

Answer 14

A link between two factors

Eg. Sales and money spent on advertising

Question 15

Confidence intervals

Answer 15

How reliable the sampled data is

(Eg. 36% of people will buy the product
With a confidence interval 4%
36% + or - 4% (32-40%))

Question 16

Factors which influence confidence interval

Answer 16

1. Sample size
2. Population size
3. Percentage of sample choosing a particular answer

Question 17

Time series analysis

Answer 17

Looking at data over time

Question 18

Extrapolation

Answer 18

Using past days to extend an identified trend into the future

Question 19

price elasticity of demand
(PED)

Answer 19

a measure of how responsiveness demand is to a change in price

Question 20

when PED is greater than 1 then what is the product?

Answer 20

elastic

Question 21

when PED is less than 1 then what is the product?

Answer 21

inelastic

Question 22

price elastic

Answer 22

a change in price will cause a change in demand

Question 23

price inelastic

Answer 23

a change in price will not cause a change in demand (for example insulin)

Question 24

income elasticity of demand (YED)

Answer 24

where the responsiveness of demand to a change in income

Question 25

when YED is greater than 1 then what is the product? (ignoring - +)

Answer 25

elastic

Question 26

when YED is less than 1 then what is the product? (ignoring - +)

Answer 26

inelastic

Question 27

what does it mean if YED is negative?

Answer 27

the product is an inferior good

Question 28

what does it mean if YED is positive?

Answer 28

the product is a normal good

Question 29

normal good

Answer 29

where an increase in income results in an increase in demand (usually luxury and branded goods)
eg. walkers crisps

Question 30

inferior goods

Answer 30

where an increase in income results in a decrease in demand
eg. Aldi, shop’s own products

Question 31

list some technology which can be used to gather data on customers

Answer 31

loyalty schemes
social networking sites
search engines
wifi signals

Question 32

targeting

Answer 32

the process of deciding which segment of the market to focus on

Question 33

seasonal fluctuations

Answer 33

fluctuations that repeat on a seasonal basis (eg. Easter egg sales being high around Easter)

Question 34

product portfolio

Answer 34

the range of products a business sells

Question 35

what does STP stand for?

Answer 35

segmentation, targeting and positioning

Question 36

what are the pros and cons of segmentation?

Answer 36

+allows for specific advertising
+helps know needs and wants of customers
+helps to build a strong brand image
-difficult to know who to target
-may be too specific
-companies may ignore lucrative segments

Question 37

Market segmentation

Answer 37

Dividing a market into parts that reflect different customer needs and wants

Question 38

What are the parts of the product life cycle?

Answer 38

Development
Introduction
Growth
Maturity
Decline

Question 39

Product life cycle

Answer 39

A technique used to track the stages of a product goes through during its life

Question 40

What are on the axis of a Boston matrix?

Answer 40

Y axis- market growth
X axis- market share

Question 41

On the Boston matrix what category is a product if it has high market growth and high market share?

Answer 41

Star

Question 42

On the Boston matrix what category is a product if it has high market growth and low market share?

Answer 42

Question mark (problem child)

Question 43

On the Boston matrix what category is a product if it has low market growth and high market share?

Answer 43

Cash Cow

Question 44

On the Boston matrix what category is a product if it has low market growth and low market share?

Answer 44

Dog

Question 45

Price

Answer 45

The money charged for a product or service

Question 46

Price skimming

Answer 46

Involves setting a high initial price for a new product in order to recoup costs and then over time reducing (skimming) the price

Question 47

market size

Answer 47

the number of sales by value or volume in a market as a whole

Question 48

Penetration pricing

Answer 48

Pricing strategy of having low initial prices to gain customer appeal

Question 49

Competitive pricing

Answer 49

Pricing strategy of making prices lower than competitors to stay competitive

Question 50

Loss leader

Answer 50

pricing strategy of making a loss on one product to entice customers to shop at your business