marketing decisions

Question 1

what are the different kinds of marketing objectives

Answer 1

-sales volume and sales size

-sales growth

-market share

-market size and market growth

-market share

-brand loyalty

Question 2

what is the calculation to find market growth

Answer 2

market size -old market size / old market size x 100

Question 3

what is the calculation for market share

Answer 3

sales / total market size x 100

Question 4

what is the calculation for sales growth

Answer 4

sales this year - sales last year / saes last year x100

Question 5

what is market mapping

Answer 5

market mapping compares two features of brands.
how expensive they are and how much quality they have

Question 6

why is market mapping useful

Answer 6

market mapping can help a business spot a gap in the market

shows who the closest competitors are

Question 7

why is market research conducted ?

Answer 7

market research helps a business to spot opportunities -such as customer buying patterns

helps them see if business plans are working

Question 8

what is quantitative market research

Answer 8

-quantitative means numerical statistics -facts and figures

Question 9

what is qualitative market research

Answer 9

qualitative research looks into the feelings and motivations of customers

Question 10

what is primary market research

Answer 10

primary market research is a unique study eg data gathered using things like questionars or interviews

Question 11

what is secondary market research

Answer 11

secondary market research means gathering data that already exists -easier faster and cheaper

Question 12

what is time series analysis

Answer 12

time series analysis is used to reveal underlying patterns by recording and plotting data over time e.g recording sales over the course of a year

Question 13

what are trends

Answer 13

a trend is a long term movement of a variable

Question 14

what is extrapolation

Answer 14

extrapolation means using previous trends in order to forecast future trends

Question 15

how could a business use technology to gather information about customers

Answer 15

through the use of loyalty cards

entering information on websites

Question 16

what is price elasticity of demand

Answer 16

the price elasticity of demand shows how sensitive demand is to changes in price

Question 17

the price elasticity is more than 1 is it price elastic or price inelastic

Answer 17

if the coifent is more than 1 then the product is price elastic

Question 18

if the product is less than 1 e.g 0.5 then is it price elastic or price inelastic

Answer 18

inelastic

Question 19

how is price elasticity calculated

Answer 19

change in quantity demanded/ change in price

Question 20

how is income elasticity calculated

Answer 20

change in quantity demanded/ change in real income

Question 21

what does STP stand for in relation in marketing decisions

Answer 21

segment, target, position

Question 22

what does it mean to segment a market

Answer 22

to divide a market into different groups of buyers, each group will have different wants and needs and characteristics

Question 23

what is a target market

Answer 23

decide which market segment to focus upon

Question 24

how is positioning done with relation to a target market

Answer 24

positioning the product to best appeal to the target market

Question 25

what are the seven Ps of the marketing mix?

Answer 25

product, price, place, promotion, people, process and physical environment

Question 26

what are the three types of consumer product

Answer 26

convenience products - inexpensive everyday products bought regularly by lots of people

shopping product- things like cloths and computers, more expensive and are sold in fewer places than convenience products

speciality products- these are things consumers believe hold more value or are unique in some way and these customers would be willing to travel to buy from this specific brand

Question 27

describe the different points on the Boston matrix

Answer 27

stars - high market share high growth

question marks - high growth low share

cash cows - high share low growth

dogs - low growth low share

Question 28

list the stages of the product life cycle

Answer 28

development - research and development

introduction - product in launched

growth - product is growing fast lots of new customer

maturity - sales reach a peak and profitability increases fewer new customers

decline - the product doesnt appeal to customers any more sales fall rapidly

extension strategies could be used e.g improving or changing the product so it doesnt go into matury or decline

Question 29

what is price skimming

Answer 29

when a product is released it initially has higher prices and over time the prices decrease

Question 30

penetration pricing

Answer 30

pentration pricing is the opposite of price skimming where prices start of low and increase incrementally over time

Question 31

what is predatory pricing

Answer 31

predatory pricing is when large market leaders lower their prices to a point where smaller competition cannot compete on prices so these smaller companies are forced out of the market

Question 32

what is dynamic prices

Answer 32

dynamic pricing is when prices are changed depending on external factors and dont stay fixed

Question 33

what are the alternate types of pomortion

Answer 33

-advertisement

-PR good publicity in the media