Unit 3 - Marketing

Question 1

Marketing

Answer 1

is identifying customer wants and satisfying them pro tably

Question 2

A customer

Answer 2

is a person, business or other organisation which buys goods or services from a business

Question 3

Customer loyalty

Answer 3

is when existing customers continually buy products from the same business

Question 4

Customer relationships

Answer 4

is communicating with customers to encourage them to become loyal to the business and its products

Question 5

Market share

Answer 5

is the percentage of total market sales held by one brand or business

Question 6

Mass market

Answer 6

is where there is a large number of sales of a product

Question 7

Niche market

Answer 7

is a small, usually specialised, segment of a much larger market

Question 8

Market segment

Answer 8

is an identi able sub-group of a whole market in which consumers have similar characteristics or preferences

Question 9

Market research

Answer 9

is the process of gathering, analyzing and interpreting information about a market

Question 10

Product-orientated business

Answer 10

is one whose main focus of activity is on the product itself

Question 11

Market-orientated business

Answer 11

is one which carries out market research to a nd out consumer wants before a product is developed and produced

Question 12

Marketing budget

Answer 12

a nancial plan for the marketing
of a product or product range for some speci c period of time. It speci es how much money is available to market the product or range, so that the Marketing department may know how much it may spend

Question 13

Primary research

Answer 13

is the collection and collation of original data via direct contact with potential or existing customers

Question 14

Secondary research

Answer 14

uses information that has already been collected and is available for use by others

Question 15

A questionnaire

Answer 15

is a set of questions to be answered as a means of collecting data for market research

Question 16

Online surveys

Answer 16

require the target sample to answer a series of questions over the internet

Question 17

Interviews

Answer 17

involve asking individuals a series of questions, often face-to-face or over the phone

Question 18

A focus group

Answer 18

is a group of people who are representative of the target market

Question 19

A sample

Answer 19

is the group of people who are selected to respond to a market research exercise, such as a questionnaire

Question 20

A random sample

Answer 20

is when people are selected at random as a source of information for market research

Question 21

A quota sample

Answer 21

is when people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research

Question 22

The marketing mix

Answer 22

s a term which is used to describe all the activities which go into marketing a product or service. These activities are often summarized as the four Ps - product, price, place and promotion

Question 23

The USP

Answer 23

is the special feature of a product that di erentiates it from the products of competitors

Question 24

The brand name

Answer 24

is the unique name of a product that distinguishes it from other brands

Question 25

Brand loyalty

Answer 25

is when consumers keep buying the same brand again and again instead of choosing a competitor’s brand

Question 26

Brand image

Answer 26

is an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors’ brands

Question 27

Packaging

Answer 27

is the physical container or wrapping for a product. It is also used for promotion and selling appeal

Question 28

The product life cycle

Answer 28

describes the stages a product will pass through from its introduction, through its growth until it is mature, and then nally its decline

Question 29

Extension strategy

Answer 29

is a way of keeping a product at the maturity stage of the life cycle and extending the cycle

Question 30

Cost-plus pricing

Answer 30

is the cost of manufacturing the product plus a pro t mark-up

Question 31

Competitive pricing

Answer 31

is when the product is priced in line with or just below competitors’ prices to try to capture more of the market

Question 32

Penetration pricing

Answer 32

is when the price is set lower than the competitors’ prices in order to be able to enter a new market

Question 33

Price skimming

Answer 33

is where a high price is set for a new product on the market

Question 34

Promotional pricing

Answer 34

is when a product is sold at a very low price for a short period of time

Question 35

Dynamic pricing

Answer 35

is when businesses change product prices, usually when selling online, depending on the
level of demand

Question 36

Price elastic demand

Answer 36

is where consumers are very sensitive to changes in price

Question 37

Price inelastic demand

Answer 37

is where consumers are not
sensitive to changes in price

Question 38

A distribution channel

Answer 38

is the means by which a product is passed from the place of production to the
consumer

Question 39

Promotion

Answer 39

is where marketing activities aim to raise
customer awareness, of a product or a brand,
generating sales and helping to create brand loyalty

Question 40

Advertising

Answer 40

means paying for communication with potential customers about a product to encourage
them to buy it

Question 41

informative advertising

Answer 41

is where the emphasis of
advertising or sales promotion is to give full
information about the product

Question 42

Persuasive advertising

Answer 42

is advertising or promotion
which is trying to persuade the consumer that they
really need the product and should buy it

Question 43

Target audience

Answer 43

refers to people who are potential buyers of a product or a service

Question 44

Sales promotions

Answer 44

are incentives such as special off ers aimed at consumers to achieve short-term increase in
sales

Question 45

Marketing budget

Answer 45

is a fi nancial plan for the marketing of a product or a product range for a specali ed period of time

Question 46

Social media marketing

Answer 46

is a form of internet
marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals. It includes activities such as posting text and image updates, videos, and other content that achieves audience engagement as well as paid social media advertising

Question 47

Viral marketing

Answer 47

is when consumers are encouraged to share information online about the products of a business

Question 48

E-commerce

Answer 48

is the ‘online’ buying and selling of goods and services using computer systems linked to the internet and apps on mobile (cell) phones

Question 49

A marketing strategy

Answer 49

is a plan to combine the right combination of the four elements of the marketing mix for a product or a service to achieve a particular marketing objective(s)