Unit 5

Question 1

Marketing

Answer 1

The process by which a business identifies and anticipates consumer needs and produces or supplies services to satisfy those needs profitably

Question 2

Marketing concept

Answer 2

Understanding the needs and wants of customers in the market and adapting the business to deliver the right goods and services more effectively and efficiently than its competitors

Question 3

Marketing strategy

Answer 3

Aims to design and promote a product or service based on consumer needs as identified during the market research process

Question 4

Marketing plan

Answer 4

A written plan that implements a businesss marketing strategy in order to best achieve a businesss overall objectives

Question 5

Market segmentation

Answer 5

Involves dividing up a broad target market into clearly identifiable groups of consumers, businesses or countries that have common characteristics

Question 6

Demographic segmentation

Answer 6

Divides the market by one or many broad characteristics such as age, income, gender and so on.

Question 7

Geographic segmentation

Answer 7

Uses basic geographic measures such as cities, countries, states, regions, neighbourhoods, population density, climate and the rate at which the population is growing.

Question 8

Psychological segmentation

Answer 8

Analyses consumers according to lifestyle, spending power and opinions or attitudes.

Question 9

Behavioural segmentation

Answer 9

Analyses consumers according to their patterns of buying or how the consumer interacts with a product.

Question 10

Target market

Answer 10

The specific group of people at whom a business aims a particular product or service.

Question 11

Niche market

Answer 11

A smaller group of consumers who have more specialist needs or wants that the wider market, including some who are dissatisfied with the existing products in the marketplace.