unit 3-marketing

Question 1

what is penetration skimming and why would a business use it?

Answer 1

setting the price low and gradually increasing it to increase market share eg broadbands

Question 2

what is price skimming and why would a business use it?

Answer 2

setting a high initial pricing and decreasing it over time maximise sales revenue eg. apple

Question 3

what is dynamic pricing and why would a business use it?

Answer 3

prices change frequently response to demand eg. airlines

Question 4

what is competitive pricing and why would a business use it?

Answer 4

setting prices compared to competitors eg coke and Pepsi

Question 5

what are the pros and cons of sampling?

Answer 5

pro-reduces risk within decisions
cons-small amount of people may not have the same reactions of the whole population.

Question 6

examples of marketing objectives

Answer 6

brand loyalty, sales volume, market growth

Question 7

what are internal influences on marketing objectives?

Answer 7

corporate objectives
Human Resources

Question 8

what are external influences on marketing objectives?

Answer 8

competitor actions
technological change

Question 9

how do you calculate market growth?

Answer 9

market size new - old/old x 100

Question 10

how do you calculate market size?

Answer 10

number of target users x purchases expected in a given period

Question 11

how do yo calculate market growth?

Answer 11

business sales/ market sales x 100

Question 12

what is extrapolation?

Answer 12

using historical date to make predictions on future values

Question 13

what is PED and how is it calculated?

Answer 13

measures the response in demand for a products price change
formula-percentage change in quantity/percentage change in price

Question 14

what are examples of products that are elastic?

Answer 14

luxury goods - holidays, sports cars

Question 15

what are examples of products that are inelastic

Answer 15

products you need for example petrol, electricity