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Question 1

primary research

Answer 1

research that the business go out and do themselves for example asking members of the public to answer a questionnaire they have created

Question 2

secondary research

Answer 2

research that a business doesn’t complete themselves an example of this could be looking on Google for data to base a product of off

Question 3

market research

Answer 3

gathering data about customers, competitors and market trends

Question 4

quantitative data

Answer 4

numeric

Question 5

qualitative data

Answer 5

opinion based

Question 6

geographic segmentation

Answer 6

when a company segment there target market by location, region, rural/urban

Question 7

psychographic segmentation

Answer 7

when a company segment there target market by hobbies, class, life style

Question 8

behavioural segmentation

Answer 8

when a company segment there target market by usage, loyalty, benefits

Question 9

demographic segmentation

Answer 9

when a company segment there target market by age, sex, occupation, income

Question 10

examples of competitive advantage (7)

Answer 10

product design, product quality, promotional offers, customer service, delivery times, ethical stance, product attributes

Question 11

examples of adding value (8)

Answer 11

usp, inputs, celebrities, packaging, transformation, craftsmanship, quality, outputs

Question 12

factors affecting demand (8)

Answer 12

competitors actions, changes in price, income levels, seasons, external shocks, demographics, advertising and branding, trends

Question 13

what’s the PED formula?

Answer 13

% change in quantity demanded over % change in price

Question 14

when is a product elastic?

Answer 14

when the PED is over 1 or below minus 1

Question 15

when is a product inelastic?

Answer 15

when the PED is less than 1 or higher than minus 1

Question 16

what’s the YED formula?

Answer 16

% change in quantity demanded over % change in income

Question 17

how do you work out the % change?

Answer 17

(difference over original) x 100

Question 18

what is penetration pricing in pricing strategies?

Answer 18

a business prices its products very cheap e.g. Pound land

Question 19

what is competitive pricing in pricing strategies?

Answer 19

this is when a business bases its prices on its competitors e.g. McDonald’s does not charge £6 for a burger as everyone would got to burger king

Question 20

what is psychological pricing in pricing strategies?

Answer 20

this is when a business charges for example £19.99 as the consumer then believes that product is cheaper as it does not say £20

Question 21

what is price skimming in pricing strategies?

Answer 21

a business starts at a high price and slowly begins to reduce the price over time

Question 22

what is cost-plus pricing in pricing strategies?

Answer 22

adding value- when a business chargers more than the product costs to manufacture to gain profits

Question 23

whats an advantage of psychological pricing?

Answer 23

this should increase sales as more people believe that the they are paying less which makes a profit

Question 24

whats an advantage of competitive pricing?

Answer 24

the business knows the market is there and the people will buy those products for that price or within a range

Question 25

whats an advantage of penetration pricing?

Answer 25

everyone can afford the product so they business can definitely sell products and also they have a wide target market

Question 26

whats an advantage of cost-plus pricing?

Answer 26

guaranteed profit if products or service is sold

Question 27

whats an advantage of price skimming?

Answer 27

the business can continue to sell products in different seasons to which the products are usually sold as the consumers get the product are able to buy for a cheaper price

Question 28

whats a disadvantage of psychological pricing?

Answer 28

the business is losing a few p per unit which all adds up and will decrease profits made

Question 29

whats a disadvantage of competitive pricing?

Answer 29

they are unable to sell there products for higher premium prices so they make less profit per product as they have less added value

Question 30

whats a disadvantage of penetration pricing?

Answer 30

less price per unit

Question 31

whats a disadvantage of cost-plus pricing?

Answer 31

competitors may add less value so consumers decide to go there instead

Question 32

whats a disadvantage of price skimming?

Answer 32

slowly the business earns less and less per unit and the brand image of the product maybe be taken as less premium

Question 33

why do businesses use pricing strategies? (6)

Answer 33

to increase sales, to enter new markets, to cover costs and make sure profit is made, to make a higher profit, to affect consumers perception of products, to maximize market share

Question 34

6 types of pricing strategies

Answer 34

competitive, predatory, price skimming, psychological, penetrative, competitive

Question 35

6 types of digital promotion

Answer 35

social media, viral strategies, advergaming, online adverts, consumer generated content, mobile communication

Question 36

6 types of sales promotion

Answer 36

BOGOF, special events, point of sale, price discounts, money off coupons, sample give away

Question 37

6 types of normal promotion

Answer 37

above the line advertising, below the line advertising, sponsorship's, public relations, personal selling, direct marketing

Question 38

direct marketing

Answer 38

highly focused targeted mail based on what customers have already brought

Question 39

below the line marketing

Answer 39

usually for a niche market to create awareness, communicate information

Question 40

above the line marketing

Answer 40

used in mass markets for example tv adverts and online

Question 41

what is a sponsorship?

Answer 41

paid promotions with well known people to attract consumers to buy as a celebrity has been seen using it

Question 42

public relations

Answer 42

unpaid promotions with well known people

Question 43

personal selling

Answer 43

in a niche market

Question 44

social media in promotion

Answer 44

adverts through Facebook and Instagram etc

Question 45

mobile communications

Answer 45

extends online research and allows the customer to communicate while in the move

Question 46

viral strategies

Answer 46

a business using a marketing technique which they hope will be shared to increase awareness of there product e.g coca cola putting names on bottles

Question 47

advergaming

Answer 47

advergaming is when ads pop up on games possibly through apps or online games

Question 48

consumer generated content

Answer 48

content which has been make available to other consumers online e.g. cookies

Question 49

BOGOF

Answer 49

buy one get one free

Question 50

special events

Answer 50

an advent the business holds to encourage the consumer to buy products from them

Question 51

point of sale

Answer 51

usually a cardboard display close to the tills which is branded

Question 52

money off coupons

Answer 52

can be used to capture new customers- to add incentive

Question 53

samples/ giveaways

Answer 53

letting the customer try a free sample of your product to interest them and encourage them to buy your product