AOS2 intro to marketing

Question 1

define marketing

Answer 1

-the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Question 2

marketing plan

Answer 2

• a document that lists activities aimed at achieving particular outcomes in relation toa good or service

Question 3

establishing a customer base

Answer 3

• the group of consumers who might be expected to purchase a business’ goods and services

Question 4

the customer profile

Answer 4

• customer location and environment
• customer behavior and needs that the business can satisfy
• customer demographics , such as age, gender and education level
  customers’ interests, favorite activities, lifestyles, opinions, and values.

Question 5

advantages of a customer base

Answer 5

• business can ensure the product is valued and of use to customer
• customers develop a loyalty to the business
• improved marketability of the business’ products should result in higher levels of sales and market share.

Question 6

disadvantages of customer base

Answer 6

• financial cost(market research, marketing mix)
• logistics required to establish a customer base can also be time consuming.

Question 7

80/20 principle

Answer 7

80% of your sales is likely to come from 20% of customers. the 20% are loyal customers

Question 8

business objectives

Answer 8

1. increasing the value or volume of sales
2. increasing market share
3. expanding the size of the business
4. maximising customer service