Unit 3.1 Key words

Question 1

What is Primary research?

Answer 1

It is field research and is collecting data that didn’t exist before

Question 2

What is Secondary research?

Answer 2

It is desk research that already exists

Question 3

What is Quantitative research?

Answer 3

Data that can be expressed as number and can be statistically analysed for example surveys and observations.

Question 4

What is Qualitative research?

Answer 4

Data about opinions, judgments and attitudes such as Interviews and Focus groups.

Question 5

What is Product trial?

Answer 5

When consumers buy or try a business’ brand for the first time.

Question 6

What is Repeat Purchase?

Answer 6

When a consumers buy a business’ brand again after the first time. This is essential for long term success.

Question 7

What are the 5 stages of the Product life cycle?

Answer 7

Development, Introduction, Growth, Maturity and Decline.

Question 8

What is the product life cycle?

Answer 8

The stages through which a product passes from its development to being withdrawn from sales

Question 9

What is an extension Strategy?

Answer 9

Method used to increase the life of a product and prevent it falling into decline.

Question 10

What is the Boston Matrix?

Answer 10

It is a model which helps businesses analyse their portfolio of businesses and brands.

Question 11

What is the 4 category’s of the Boston Matrix?

Answer 11

Dog, Star, Cash Cow and Problem child.

Question 12

What is the meaning of a product portfolio?

Answer 12

A range of products which a business sells

Question 13

What is Market share?

Answer 13

The share of the total market that is owned by a business, product or brand.

Question 14

What is Market growth?

Answer 14

An increase in the demand for a particular product or service over time.

Question 15

What is a Brand?

Answer 15

A named product which consumers see as being different from other competitors which consumers can associate and identify with

Question 16

What is Marketing?

Answer 16

The management process that is responsible for
anticipating, identifying and satisfying customer
needs profitably

Question 17

What is Market research?

Answer 17

The process of gaining information about
customers, competitors and market trends through
collecting primary and secondary data.

Question 18

What is Penetration Pricing?

Answer 18

The business charges low prices when the product is new to get as many customers as possible.

Question 19

What is Premium pricing?

Answer 19

The business will charge more for the unique products or services as the business has a long term competitive advantage.

Question 20

What is Price Skimming?

Answer 20

Businesses charge a high price to begin with, then when product has been established, the price is lowered in order to help the product become a mass-market product.

Question 21

What is Loss-leader?

Answer 21

This is when you set the price below cost but once the product is established the firm increases the price. Usually happens when new businesses are trying to break into the market.

Question 22

What is Psychological pricing?

Answer 22

Uses a customer’s emotional response to a price to try and increase sales.

Question 23

What is Competitive pricing?

Answer 23

When a firm charges similar price to other firms in the market.

Question 24

What is the Promotional Mix?

Answer 24

How a business uses elements of promotion to make customers aware of their product.