Unit 5: Marketing

Question 1

Advertising

Answer 1

Communicating with the customer to inform them about / convince them to buy a product

Question 2

Boston Matrix

Answer 2

A tool that allows a business to analyse the value / prospects of each product in their portfolio

Question 3

Brand Image

Answer 3

How the brand is seen by the customer, their perception of its strengths, weaknesses, personality. It changes over time and all of the customers’ interactions with the brand
will inform it

Question 4

Competitive Pricing

Answer 4

Setting a price to be in line with a competitors’ price for the same or similar products

Question 5

Complementary Product

Answer 5

A product that is sold alongside another that may be of use or interest to a customer.
For example, extended warranties alongside the checkouts at Currys PCWorld

Question 6

Cost-Plus Pricing

Answer 6

Adding a percentage to the cost of producing a product so that a profit is made

Question 7

Customer Engagement

Answer 7

How the business tries to build a relationship with the customer in order to build loyalty

Question 8

Direct Marketing

Answer 8

Manufacturers speaking to customers without intermediaries. Often with leaflets or door-to-door salespeople

Question 9

Distribution Channels

Answer 9

How the product gets from manufacturer to the customer. Whose ownership does it
pass through? Manufacturer > Wholesaler / Distributor / Agent > Retailer, etc

Question 10

EPOS

Answer 10

Electronic Point of Sale. A till / checkout that will automatically update stock / print coupons and vouchers etc

Question 11

Extension Strategies

Answer 11

Methods that extend the lifecycle of a product. Such as, updated packaging, adding new or different features, changing target market, special offers, advertising, and price reduction

Question 12

Focus Group

Answer 12

A group of people chosen from the target market to discuss a product. Provides the business with qualitative data relating to their opinions

Question 13

Intermediary

Answer 13

The businesses in the middle of the distribution channel between manufacturer and the customer

Question 14

Loss Leader

Answer 14

A product sold for less than it costs in order to encourage more customers. For example, fuel at supermarkets

Question 15

Market Research

Answer 15

Collecting information about customers, competitors, and the market that a company
operates in

Question 16

Marketing

Answer 16

The activities within a business that combine to ensure the customer gets what they want, in the quantities they want, at a price they are willing to pay

Question 17

Marketing Mix

Answer 17

The four areas of marketing, and how a company uses them in combination to meet
the needs and wants of customer while maximising sales, revenue and profit

Question 18

Penetration Pricing

Answer 18

Setting a low price in order to establish a new product in a market, or to quickly gain market share

Question 19

Point of Sale

Answer 19

The place in a store, or webshop that the customer buys the product. Often an
opportunity to attempt to sell complementary products

Question 20

PR – Public Relations

Answer 20

The act of managing the relationships between the business and wider groups. For example, environmental groups, pressure groups or investors. All with the aim of improving brand image

Question 21

Primary Research

Answer 21

Designing your own research, then collecting the information first-hand

Question 22

Product Differentiation

Answer 22

Developing features within a product that set it apart from other products in the same market. Using these differences to help promote the product and convince customers

Question 23

Product Lifecycle

Answer 23

The stages a product goes through from initial idea to removal. Research and
Development > Introduction > Growth > Maturity > Decline (> Rejuvenation / Extension)

Question 24

Product Portfolio

Answer 24

The range of products offered by a company

Question 25

Promotion

Answer 25

Communicating with customers in order to inform / remind them about a product or persuade them to buy

Question 26

Qualitative Market Research

Answer 26

Collecting information about customers’ thoughts/opinions about a product –
customers are able to explain in detail

Question 27

Quantitative Market Research

Answer 27

ollecting information in a numerical manner – less detail is possible, but statistical analysis is easier

Question 28

Retail

Answer 28

A business that sells goods

Question 29

Sales Value

Answer 29

The revenue generated from sales

Question 30

Sales Volume

Answer 30

The number of items sold

Question 31

Secondary Research

Answer 31

Using sources of information that have already been collected / published. Also called ‘desk research.’

Question 32

Segmentation

Answer 32

Dividing a market into groups that can be more easily targeted with specific products / adverts / prices. It enables the business to meet the needs of a specific group more easily

Question 33

Skimming

Answer 33

Setting a higher than usual price when a product is first released to capitalise on early adopters being willing to pay more. For example, Xbox ‘Day One Edition.’

Question 34

Telesales

Answer 34

Attempting to sell products by phone

Question 35

Unique Selling Point (USP)

Answer 35

The main benefit / key feature of a product that differentiates it from the other products in the same market

Question 36

Wholesaler

Answer 36

A business that sells in large quantities, usually buying them from manufacturers, then
selling to retailers.