1.3

Question 1

Extension strategy

Answer 1

Marketing activities used to prevent sales from declining

Question 2

Pricing tactics

Answer 2

Short term pricing responses to opportunities or threats.

Question 3

Pricing tactics

Answer 3

Short term pricing responses to opportunities or threats.

Question 4

Product + service design

Answer 4

Design means finding the right balance between creating something that people desire to have, that they can afford to buy and the works reliably.

Question 5

Marketing strategy

Answer 5

This is a carefully evaluated plan for future marketing activity that balances

• company objectives
• available resources
• market opportunities

It is used throughout the marketing mix.

Question 6

Portfolio analysis

Answer 6

An analysis of the market position of the firms existing products; it is used as part of the marketing planning process.

Question 7

Homogeneous goods

Answer 7

These have no points of differentiation and therefor each one is the same as every other (making competition focus on price)

Question 8

Product differentiation

Answer 8

The extent to which consumers perceive there products as being different from others

Question 9

Product life cycle

Answer 9

The theory that all products follow a similar pattern overtime.
Development
Birth
Growth
Maturity
Decline

Question 10

Product portfolio

Answer 10

Places brands in to a matrix based on market share and market growth

Question 11

Problem child

Answer 11

A product that has a small market share of a fast growing market.

Question 12

Rising star

Answer 12

A product that has a high share of a fast growing market

Question 13

Dog

Answer 13

A product that has a low share of a low growth market

Question 14

Cash cow

Answer 14

A product that has a high share of a low growth market

Question 15

Cash cow

Answer 15

A product that has a high share of a low growth market

Question 16

Distribution

Answer 16

Is based on availability.

How to get the products to the right place for customers to make there purchase. It includes physical or online distribution.

Question 17

barrier to entry

Answer 17

Factors that make it hard for new firms to break in to an existing market.

Eg. Strong brand loyalty to the current market leaders.

Question 18

Opportunity cost

Answer 18

The cost of missing out on the next best alternative when making a decision

Question 19

E-commerce

Answer 19

Business carried out online

Eg. Amazon, eBay

Question 20

Impulse purchasing

Answer 20

Buying in an unplanned way.

Eg. Going to a shop to buy paper, but coming out with a mars-bar & a Diet Coke

Question 21

Long tail

Answer 21

The huge number of tiny businesses appealing to minority tastes that can find a profitable existence online because they can target the whole planet, not just the local area.

Question 22

Wholesaler

Answer 22

The middleman between the producer and retailers, who break bulk down from container lorry loads in to manageable parcels eg. Case of 12

Question 23

Pricing stratergies

Answer 23

Price is the amount paid by the customer for a good or service. A pricing strategy is the plan for setting a products price for the medium to long term.

Question 24

Price sensitive

Answer 24

When customer demand for a product reacts sharply to a change in price.

Question 25

Price elasticity

Answer 25

A measurement of the extent to which a product demand changes when the price is changed

Question 26

loss leader

Answer 26

Pricing a product below cost in order to attract further, profitable business.

Eg. Sony did this @ the launch of ps3 & PS4 to bring customers who will then buy accessories and software from Sony.

Question 27

Crowdfunding

Answer 27

Obtaining external finance from many individual small investment usually through a web based appeal

Question 28

Capacity utilisation

Answer 28

This measures actual usage of your facilities as a percentage of the maximum possible.

Eg. A half empty hotel has 50% capacity utilisation

Question 29

Corporate brand

Answer 29

A brand that represents the whole company as well as its products.

Eg. Every JCB vehicle features the JCB logo.

Question 30

Prototype

Answer 30

A test model of a planned design, used to see if it functions properly, with durability, reliability and safety.

Question 31

Sustainability

Answer 31

Making something using materials that will still be around for future generations, perhaps because you are planting a tree for every one you cut down.