business gemma

Question 1

how can a market size be measured?

Answer 1

1. by volume
2. by value

Question 2

why doing a market research

Answer 2

• to identify customer wants and needs
• to identify consumer habits
• to find gaps in the market
• to identify the type of competition

Question 3

how the inflation is measured?

Answer 3

by RPI - retail price index

Question 4

exchange rates
if export grows
if import grows

Answer 4

• if export grows - currency’s value rises
• if import grows - currency’s value falls

Question 5

5 pricing strategies + explaination of each

Answer 5

1. cost + pricing - unit cost + a little on top
2. penetration pricing - low price to appeal
3. price skimming - high price to reduce it later
4. psychological pricing - 99$ instead of 100$
5. dynamic pricing - changes the prices according to demand

Question 6

7Ps

Answer 6

• product
• place
• promotion
• price
• people
• process
• physical evidence

Question 7

what makes a product price elastic

Answer 7

• availability of substitutes
• inflation
• interest rates
• little brand loyalty
• expensive good

Question 8

if elastic PED and price rise

Answer 8

lower total revenue

Question 9

if inelastic PED and price rise

Answer 9

higher total revenue

Question 10

if elastic PED and price fall

Answer 10

• higher total revenue

Question 11

if inelastic PED and price fall

Answer 11

lower total revenue

Question 12

what happens to inferior goods when incomes rise?

Answer 12

demand for them falls

Question 13

in what 4 ways a market can be segmented?

Answer 13

1. income
2. demographics
3. behaviour
4. location

Question 14

what are typically 2 axes in market mapping?

Answer 14

1. quality
2. price

Question 15

what are the 5 stages of a product lifecycle?

Answer 15

1. development
2. introduction
3. growth
4. maturity
5. decline

Question 16

the features of development stage

Answer 16

• high unit cost
• research

Question 17

the features of the introduction stage

Answer 17

• narrow distribution
• high unit cost
• extensive promotion
• convincing customers to purchase

Question 18

the features of the growth stage

Answer 18

• gain profitability
• maximising the length of this stage
• high costs
• limited customer takeout

Question 19

the features of maturity stage

Answer 19

• competitors exit
• max revenue
• oversaturated market
• extension strategies

Question 20

the features of the decline stage

Answer 20

• still a positive cashflow
• revenue is falling
• obsolete technology

Question 21

high market share and high market growh product

Answer 21

star

Question 22

low market share and low market growth product

Answer 22

dog

Question 23

low market share and high market growth product

Answer 23

question mark / problem child

Question 24

high market share and low market growth product

Answer 24

cash cow

Question 25

2 types of goods

Answer 25

1. consumer B2C 2. industrial B2B

Question 26

3 types of products

Answer 26

1. speciality products - products with a strong preference to 2. shopping products - bought less frequantly and require shopping around 3. convenience products - everyday goods

Question 27

3 types of goods

Answer 27

1. normal goods 2. luxury goods 3. inferior goods

Question 28

what are the 4 stages of economic cycle

Answer 28

1. recovery 2. recession 3. boom 4. slump

Question 29

external factors affecting the business

Answer 29

- economic factors - social factors - competitive factors - technological advancements - environmental factors

Question 30

normal, luxury and inferior goods and their YED

Answer 30

Normal good YED > 0 Luxury good YED > 1 Inferior good YED < 0