marketing test Flashcards
Describe personal interviews and postal surveys
A face-to-face discussion between a trained interviewer and a respondent which can take place in the street or at home.
A list of questions is sent to people through the post. They will complete the survey and send it back to the business.
Describe one cost and one benefit of personal interviews and postal surveys
Body language and facial expression can be observed.
It is a costly method of research as interviewers need to be trained.
Cost effective way of sending a survey to a large number of people over a wide geographic area.
The response rate may be very low.
Describe two pricing strategies
Low price- setting a price that is lower than competitors (e.g. if a competitor charge £4.00 the business might charge £3.50)
Psychological- charging a price which makes the customer think the product/service is cheaper than it actually is (e.g. charging £9.99 instead of £10.00)
Outline the four stages of the product life cycle
The first stage of the product life cycle is the introduction. This is when the product is launched onto the market and the product is heavily advertised to inform customers. Sales will be low at this stage with little to no profit.
The second stage of the product life cycle is growth. This is when the product is becoming more well-known and popular. Advertising continues but at a lower rate than before while sales are rapidly increasing and profit is beginning to be made.
The third stage of the product life cycle is maturity. This is when the product is well established on the market and advertising is used only as a reminder. At this stage sales and profits have reached their peak.
The fourth stage of the product life cycles is decline. This is when the popularity of the product has fallen and there is strong competition in the market. At this stage sales and profits are falling.
Describe two benefits of branding
Brands are perceived to be of higher quality.
Brands generate ‘brand loyalty’ and mean greater sales.
Compare two methods of distribution
By using road it is a door-to-door service whereas road is still needed once goods arrive at the station when using rail.
When using road it can be difficult to carry large, bulky goods whereas when using rail large, bulky items can easily be transported around the country.
The road method is not environmentally friendly and leads to increased pollution whereas using the rail method reduces carbon footprint.
2 factors a business will need to consider when choosing a location
Where the customers are located.
Parking availability near the location.
Outline 2 ways technology can be used in the marketing department
graphics and desktop publishing- these can be used to produce professional and attractive advertising materials.
OR codes, apps and text messaging- used to advertise and target promotions to customers.
2 benefits for a business operating in an e-commerce facility
May reduce costs as high street premises may not be required.
Customers worldwide can be targeted so increase potential sales.
3 types of promotion businesses can use
loyalty cards- a customer receives points/credit for making continued purchases (e.g. boots loyalty card)
coupons- collectible vouchers which can be redeemed in store when purchasing a product.
discounts- reducing prices for a short period of time (e.g. 20% off sale)
