1.1

Question 1

Marketing mix

Answer 1

The plan for getting the right blend of product, price, promotion and place

Question 2

Marketing objectives

Answer 2

The targets the marketing department must achieve eg. Increasing sales by 15 % within 12 months

Question 3

Marketing strategy

Answer 3

The medium to long term plan for meeting the marketing objectives, delivered through the marketing mix

Question 4

Bias

Answer 4

A factor that causes research findings to be unrepresentative of the whole population- eg. Bubbly interviewers, misleading questionnaire

Question 5

Niche market

Answer 5

Small markets with specific needs for specialised products or services. Eg. Quality chocolate

Question 6

Mass market

Answer 6

Large markets with sales volume. Where one standardised product is aimed at a large group of customers.

Question 7

Market Segmentation

Answer 7

Dividing markets up by customers age, sex or income. This is to find areas that are underserved.

1. Demographically (age, sex)
2. Psychographically (attitudes)
3. Geographically (region)

Question 8

Sample size

Answer 8

The number of people interviewed. This should be large enough to give confidence that the results represent the whole population.

Question 9

Unique selling point

Answer 9

Any feature of a product that clearly distinguishes it from its rivals.

Question 10

Market research

Answer 10

It gathers information about consumers, competitors and distributors within a firms target market.

Question 11

Market positioning

Answer 11

When launching a new product or service companies need to decide exactly where they want to position there brand in relation to customer perceptions and positioning of competitors.

Question 12

Economies of scale

Answer 12

Firms that can produce efficiently at low costs can afford to charge lower price & therefor gain a competitive advantage by being a cost leader in there market.

Question 13

Generic brands

Answer 13

Brands that are so well known that they use the brand when they mean the product. Eg. Ill hoover the floor.

Question 14

The market

Answer 14

Is where buyers meet the sellers, either face to face or online.

Question 15

Market mapping

Answer 15

Plotting the position of consumers against key characteristics of a product.
This

• reveals where competition is
• where target audience are

Question 16

Franchise

Answer 16

A business that sells the rights to the use of its name & trading methods to local businesses

Question 17

Product differentiation

Answer 17

The extent to which consumers perceive your product as different from others.

Question 18

Secondary research

Answer 18

Finding out information that has already been gathered.

Eg. Governments estimates of the number of 14-16 year olds in wales.

Question 19

Primary research

Answer 19

Finding out information first hand

Eg. Coca Cola designed a questionnaire to obtain information from people who generally buy diet products.

Question 20

Price elasticity

Answer 20

A measurement of the extent to which a products demand changes when the price is changed

Question 21

Adding value

Answer 21

Difference between the selling price and the cost of the raw materials.

Question 22

Competitive advantage

Answer 22

Having an edge over rival products. It may be based of low cost and keen prices or and innovative design feature.

Question 23

Quantitive research

Answer 23

Analysis of numerical data

Question 24

Qualitative research

Answer 24

Customers genuine opinions. Aims to understand customer behaviour.

Question 25

Market orientation

Answer 25

Businesses will focus of customer preferences and needs, it involves expensive market research

Question 26

Product orientation

Answer 26

Businesses will focus its efforts on creating the product rather than responding to market needs. Make the product first and then sell it. Eg. I phone

Question 27

uncertainty

Answer 27

Where events are unpredictable. Caused by factors outside the control of the business.

Question 28

risk

Answer 28

Situations where the outcomes are known and can be quantified

Question 29

Competition

Answer 29

Creates:

1. Lower prices
2. Better quality
3. More choice
4. Innovation
5. Better efficiency

Question 30

Product innovation

Answer 30

New technologies make it possible to create new products or to improve the quality of existing ones.

Question 31

Process innovation

Answer 31

Using new technologies to improve production methods so that costs are reduced. Change is often invisible to customers, but may result in price cuts.

Question 32

Innovation

Answer 32

Bringing a new idea in to existence and using it.

Question 33

Dynamic markets

Answer 33

A market that is constantly changing, due to change in incomes, fashions, new competition.