Marketing

Question 1

4 p’s in marketing:

Answer 1

Product
Price
Promotion
Place

Question 2

What does packaging do for a product?

Answer 2

• displaying information
• protects the product
• gives appeal
• advertising
• gets customers attention
• differentiates

Question 3

Random sample:

Answer 3

Names are drawn at random

Question 4

Stratified sample:

Answer 4

putting people into groups then drawing names ie. Males and females

Question 5

Cluster sample:

Answer 5

Sample in a particular place that represents everywhere else

Question 6

Systematic sample:

Answer 6

Ie. Every 5th person

Question 7

Quota sample:

Answer 7

Ie. 20 students, 40 workers and 5 retired

Question 8

Convenience sample:

Answer 8

Anywhere that’s easy to sample in

Question 9

Discrimination pricing

Answer 9

Charging different prices to different customer groups

Question 10

Cost plus pricing

Answer 10

A percentage mark up is added to unit cost of producing an item

Question 11

Loss leader:

Answer 11

Price is set below cost price as a way of attracting customers

Question 12

Price skimming:

Answer 12

Price is set high at launch to maximise profit

Question 13

Promotional pricing:

Answer 13

Short term low pricing

Question 14

Psychological pricing:

Answer 14

Pricing an item to make it appear better value eg 99p instead of £1

Question 15

Premium pricing:

Answer 15

Charging high prices and keeping it high

Question 16

Destroyer pricing:

Answer 16

A strategy of sustained low prices designed to drive a competitor out of the market

Question 17

Competitor pricing:

Answer 17

Price matching your nearest competitor

Question 18

Penetration price:

Answer 18

Price set low in order to gain market share

Question 19

Examples of above the line promotion?

Answer 19

Advertising:

• tele
• social media
• radio
• websites
• papers

Question 20

examples of below the line promotion?

Answer 20

All others:

• direct selling
• direct marketing
• vouchers/ coupons
• leaflets
• competitions
• offers

Question 21

What is trial marketing?

Answer 21

Launching a new product in one city as a trial

Question 22

What would trial marketing be done?

Answer 22

• helps to see if the product would sell
• who it sells to, who to aim it at
• what price range to set
• so they won’t make a loss
• to identify any problems
• see where it sells

Question 23

What is market segmentation?

Answer 23

Putting people into groups and everybody in that group has similar things in common

Question 24

Boston matrix shows

Answer 24

Relative market share against market growth rate

Question 25

Boston matrix

Cash cow?

Stars?

Question mark?

Dogs?

Answer 25

Cash cow - market share in a slow growing industry

Stars - high market share in a highly growing industry

Question mark - small market share in a high growth market

Dogs - low market share in a low, slow growing market

Question 26

What does the product life cycle show?

Answer 26

The life cycle products go through

• introduction
• growth
• maturity
• decline