Unit 5 - Marketing

Question 1

Segmentation occurs when…

Answer 1

a market is divided into different groups of needs and wants

Question 2

Benefits of segmentation: (customers, price)

Answer 2

1. can fit customer needs better
2. target its customers more precisely
3. set price appropriately

Question 3

Ways of segmenting a market: (4)

Answer 3

1. gender
2. age
3. location
4. income

Question 4

Drawbacks of Segmentation:

Answer 4

1. reducing total available market size
2. expensive to gather market / segment research

Question 5

Market Research gathers information about… (4)

Answer 5

1. demand
2. market share
3. competition
4. target market

Question 6

Types of data? (2)

Answer 6

1. Quantitative
2. Qualitative

Question 7

Uses of Market Research: (2)

Answer 7

1. identify opportunities in market
2. learn from competition

Question 8

Primary Market Research:

1. forms of survey (4)
2. benefits and drawbacks of Primary Market Research? (3 + 2)

Answer 8

1. focus groups, customer feedback, questionnaires, printed press (newspapers / magazines)
2. business-specific Qualitative and Quantitative data, business can ask specific questions, and data won’t be outdated, but expensive and time consuming

Question 9

Secondary Market Research

1. types of servey
2. benefits and drawbacks

Answer 9

1. published market studies,
2. quick and cheap to collect, larger-scale, but data can be outdated, not business specific

Question 10

Marketing Mix:

P
P
P
P

Answer 10

Price
Product
Place
Promotion

Question 11

Product Lifecycle States:

D
I
G
M
D

Answer 11

Development
Introduction
Growth
Maturity
Decline

Question 12

Types of Pricing Decisions:

P____ S________
P____ P___________
C_________ P______
L___ L_______
C___ P___ P______

Answer 12

Price Skimming
Price Penetration
Competitive Pricing
Loss Leader
Cost Plus Pricing

Question 13

P____ S_______:

1. price
2. aims
3. works if

Answer 13

Price Skimming:

1. high initial price
2. aims to repay development costs
3. works if people are willing to pay more

Question 14

P____ P___________:

1. price
2. aims
3. works if

Answer 14

Price Penetration:

1. initial low price
2. aims to get sales quickly, market share quickly
3. works if customers sensitive to price

Question 15

C_________ P______:

1. price
2. aims
3. works if

Answer 15

Competitive Pricing:

1. tries to match price of competition
2. aims to compete directly
3. if products are similar, price is an important factor

Question 16

L___ L______:

1. price
2. aims
3. example

Answer 16

Loss Leaders:

1. sometimes sells at a loss
2. customer will buy more of something else where firm makes profit
3. razors cheap but blades expensive, luring customers into the shop

Question 17

C___ P___ P______

1. price
2. aims
3. advantage but disadvantage

Answer 17

Cost Plus Pricing:

1. buy at a certain price and add on a percentage
2. aims to ensure business covers its costs and makes profit
3. simple to apple, but doesn’t consider demand in market and customer’s willingness to pay