marketing

Question 1

How does a business segment their customers?

Answer 1

• age
• gender
• socio-economic group
• education level
• income

Question 2

How is Target Marketing beneficial to businesses?

Answer 2

• The business can produce goods and services specifically for the group they are targeting.
• It can more closely meet the needs of those customers, and so is more likely to make a sale.
• The marketing can be targeted at those who are most likely to want to pay for the product, so costs can be reduced.

Question 3

What are the two types of Market Research?

Answer 3

• Desk Research — looking at existing information, usually drawn up by someone else do their own purpose, e.g. government statistics, internet websites and blogs, trade magazines etc.
• Field Research — going outside the business to gather the information the business needs, e.g. postal surveys, online surveys and street surveys.

Question 4

What are the Advantages and Disadvantages of each method of Market Research?

Answer 4

Desk Research

Advantages
- relatively cheap
- quicker and easier to obtain

Disadvantages
- information may not be up-to-date
- originally collected for another purpose
- available to competitors

Field Research

Advantages
- information is up-to-date
- is collected for the exact purpose required
- it is not available to competitors

Disadvantages
- can be costly
- may take time to collect

Question 5

What are the 4 P’s/ the Marketing Mix?

Answer 5

Product - the goods and services that the organisation provides for customers
Price - the amount charged by the organisation to the customer
Place - the location where the customer can buy the product
Promotion - informing and persuading customers of the products or services on sale

Question 6

What are the stages of the Product Life Cycle?

Answer 6

• Development
• Launch
• Growth
• Maturity
• Decline

Question 7

What are the Methods of Distribution?

Answer 7

• Road
• Rail
• Sea
• Air

Question 8

What are the Advantages and Disadvantages of each Method of Distribution?

Answer 8

Road

Advantages
- door-to-door service
- can make multiple stops

Disadvantages
- petrol is expensive
- roadworks can cause delay
- cannot transport large loads
- not environmentally friendly

Rail

Advantages
- quicker than road
- can transport large loads

Disadvantages
- not door-to-door
- have to make other arrangement to get to the destination (e.g. road)

Air

Advantages
- quickest method
- can transport large amounts

Disadvantages
- expensive
- not door-to-door
- have to make other arrangement to get to the destination (e.g. road)

Sea

Advantages
- can transport large amounts of
- more environmentally friendly than other methods

Disadvantages
- not door-to-door
- have to make other arrangements to get to destination (e.g. road)
- slow method

Question 9

What are the Factors to Consider when choosing a Location?

Answer 9

• competition
• availability of resources
• costs
• government incentives
• transport links

Question 10

What are the Types of Promotion?

Answer 10

• celebrity endorsement
• DVD’s/Films
• product placement
• advertising
• exhibitions and fairs
• competitions
• loyalty card
• direct mail

Question 11

What is the use of Technology in Marketing?

Answer 11

• internet for e-commerce
• e-mail for customer feedback
• word processing for advertising posters or mail shots
• EPOS (electronic point of sale) for market research
• database for customer information