5.Marketing

Question 1

Marketing objectives

Answer 1

Sales volume and sales value
Sales growth
Market share
Market size and market growth

Question 2

Internal factors influencing marketing objectives

Answer 2

Corporate objectives
Finance
Human resources - staff needed etc

Question 3

External influences on marketing objectives

Answer 3

The market
Technology
Competitors
Ethics and environmental factors

Question 4

Marketing laws

Answer 4

Predatory pricing is illegal

Trade descriptions act regulates promotion businesses can’t lie what advertised?

Question 5

In what ways can a market be classified?

Answer 5

Location
Nature of the product
Seasonality
Development level
Product destination

Question 6

Market Growth formula

Answer 6

Changing market size divided by old market size multiplied by 100

Question 7

Market share formula

Answer 7

Sales divided by total market size multiplied by 100

Question 8

Sales growth formula

Answer 8

Change in sales last year divided by sales last year multiplied by 100

Question 9

What is market mapping?

Answer 9

Compose two features of products or brands such as quality and price

Question 10

Why is market research done?

Answer 10

Sport opportunities
Help decide what to do next
See if plans are working
But can be expensive and bad

Question 11

Extrapolation

Answer 11

Give to predict future sales
Trans and sales data from previous years can be continued into the future to forecast future sales. This allows manager to set target.

Question 12

Confidence intervals

Answer 12

Modern of error for sample results
A confidence level of 95% means you are 95% certain that your confidence in the book contains the value for the population
Can be used to show uncertainty and predict and other figures

Question 13

Price elasticity of demand

Answer 13

Shows how responsive demand is to change with price

Changing quantity demand divided by changing price percentages
Price elasticity of demand is always negative If it’s greater than one, the product is elastic if it’s less than one, it’s in elastic

Question 14

Elastic product

Answer 14

Changing demand is greater than changing price

Question 15

Inelastic product

Answer 15

Changing the amount to less than changing price

Question 16

Income elasticity of demand

Answer 16

Measure of how responsible demand is to change of income

Percentages changing quantity demented over changing real income
Normal goods are less than one
Luxury goods are more than one
And inferior have a negative income elasticity of demand

Question 17

Segment of the market

Answer 17

Divide the market into groups of similar characteristic or needs such as age groups and income groups

Question 18

Target market

Answer 18

The side which market segment to focus on the product and the market appeal to this group

Question 19

Concentrated market

Answer 19

Targeting one or two segments at a time and has growth potential

Question 20

Differentiated market

Answer 20

Several segments are targeted and the product and marketing mixes adapt to each segment only feasible for large companies

Question 21

Undifferentiated marketing

Answer 21

Segments are ignored and the company tries to reach the entire market of a single product and marketing mix

Question 22

Influences on positioning of a product

Answer 22

State of the market such as if the economy in the recession
Companies current products
Attribute of the company

Question 23

7 ps

Answer 23

People
Physical environment
Process
Product
Price
Place
Promotion

Question 24

Different factors influence integrated marketing mix

Answer 24

Competitive
Market research
Position of market
Location
Type of product
Product life cycle

Question 25

Three types of consumer product

Answer 25

Convenience product-inexpensive every day items Shopping product -clothes, computers, et cetera Speciality product -unique

Question 26

Product portfolio

Answer 26

Combination of all product lines which consists of related products with similar characteristics uses or target customers

Question 27

Boston matrix

Answer 27

To model that compares market growth with market share of a companies products Size of each circle represents sales revenue of the product

Question 28

New products are what in Boston matrix

Answer 28

They are question marks/problem children Require heavy marketing to give them a chance they have small market share high market growth

Question 29

Cash cows

Answer 29

Hi, market share but low market growth They are in maturity phase and have already been promoted

Question 30

Stars

Answer 30

Hi market Griffin high market share they’re in the profitable growth phase and have the most potential the future cash cows

Question 31

Dogs

Answer 31

Low market share and low market Grove usually a failed product and no longer growing

Question 32

Product life cycle

Answer 32

Development Introduction Growth Maturity Decline

Question 33

Extension strategies keep a product going strong

Answer 33

Product development such as improving or redesigning a product Market development such as finding new markets Change price Change the way they promote

Question 34

Factors affecting pricing decisions

Answer 34

Cost of product Price elasticity of demand Competitors Products, life cycle

Question 35

Price skimming

Answer 35

New products are sold at higher prices when first in market and then later prices will drop when matured

Question 36

Penetration pricing

Answer 36

Products are sold at a lower price which may attract customers and then later rises slowly

Question 37

Pricing strategies

Answer 37

Predatory pricing Competitive pricing Psychological pricing Loss leaders

Question 38

Types of promotion

Answer 38

Merchandising Direct mail Personal salon Sponsorship Relationship marketing such as loyalty cards PR/publications

Question 39

Direct selling

Answer 39

Selling goods from manufacturer straight to customer

Question 40

Indirect selling

Answer 40

Manufacturer retailer to customer

Question 41

Direct selling for an agent

Answer 41

Manufacturer to agent to consumer

Question 42

Indirect selling Two level Channel

Answer 42

Manufacturer to wholesaler to retailer to consumer

Question 43

Multi channel distribution

Answer 43

Businesses sell through more than one map method such as online and install it gives flexibility for customers and wide market coverage

Question 44

Short distribution channels features

Answer 44

Industrial products Few customers Expensive complex goods In frequent sales Bulky products

Question 45

Long distribution channels

Answer 45

Consumer products Many customers Inexpensive simple good Frequent sales Standard products Small Good

Question 46

What does physical environment include?

Answer 46

Decor and cleanliness Appearance of the website and staff Layout Safety