business test

Question 1

Marketing definition

Answer 1

Marketing is about finding out your customers needs and wants and developing a way of delivering them.

Question 2

Marketing activities 1

Answer 2

Carrying out market research in order to find out what customers want to buy

Question 3

Marketing activities 2

Answer 3

developing and desiginging a Product which meets customers needs and wants

Question 4

Marketing activities 3

Answer 4

Deciding on the right price to charge for the products

Question 5

Marketing activities 4

Answer 5

Deciding on the best methods of Promotion for products and making customers aware of the products.

Question 6

Marketing activities 5

Answer 6

Deciding on the right Place to sell the products

Question 7

Market segmentation Defintion

Answer 7

Organisations have decide what to make and sell, which will involve finding out who the likely customers are.

Question 8

Market segmentation Defintion

Answer 8

a Market segment is a group of buyers with similar characteristics

Question 9

Market segmentations characterisics

Answer 9

Age- Noddy and playdays for children

ideal Homes, Hello, Golf Monthly and Top Gear for Adults

geograhpic Location- More sausages eaten in scotland compared to the rest of UK

Yorkshire people eat more fish compared to rest of UK

Insulated wooden kit houses sell better in Scandinavia than in the Mediterran area

Income- People on lower incomes spend their money differently from those on higher incomes.

Family size - Solo flats compared to three-bedroom family villas

Family packs of crisps compared to single packets

Lifestyle - Goods for those who like to exercise and live a healthly/sporty lifestyle

Those who enjoy the outdoors lifestyle.

Question 10

Describe market research

Answer 10

Market research is the gathering, recording and analysing of information about the possibe market for a good or service.

Question 11

outline what needs to be found out using market research.

Answer 11

if there is a gap in the market

Exactly what the customer wants or needs in the product eg special features

what customers like or dislike about our product.

what effect a price change would have

the type pf advertising which might be beneficial to our business

if new competitors are entering the market

what our competitors are doing

What the current trends/fashion changes are.

Question 12

identify the two types of market research.

Answer 12

Field research and Desk research

Question 13

Describe Field research

Answer 13

Field research involves finding out information first hand Primary information directly from the public/consumer

Question 14

outline the advantages of field research

Answer 14

information is gathered specfic to your purpose

Information is up-to-date

Question 15

outline the disadvantages of field research

Answer 15

It is more expensive to gather compared to desk research.

It is more time consuming to gather compared to desk research.

People may not always give truthful answers in response to questions

Question 16

describe the methods of field research

Answer 16

Telephone survey are forms which contain a series of questions. They are designed to obtain answers to questions which will help gain peoples opinions.

consumer panel is when a group of people are gathered together and are given a product to look at. This allows initial reactions to be recorded. Their opinions are obtained on the design of the product, colour, shape etc and what they like and dislike about the product.

Personal interview is a face to face interview in the street or at home with a trained interviewer.

Test marketing is when the product is tried out on a small section of the market, in a limited area eg Aberdeen only.

Question 17

describe desk research.

Answer 17

Desk research is when secondary information which is already available, either from inside the organisation or from outside.

Question 18

outline the advantages of desk research

Answer 18

It is cheaper to access existing information rather than having to collect information from stratch.

It is less time consuming to gather compared to field research.

Question 19

outline the disadvantages of desk research

Answer 19

Information may be out of date

Information is available to our competitors

Question 20

Outline problems with market research

Answer 20

1. The market research questions may have been worded badly
2. People do not behave consistently or predicably
3. The actual people doing the interviews may influence how people answer.
4. People may not think too carefully about their answers, or may give any old answer.

Question 21

Describe a brand

Answer 21

A brand is a company like Heinz or a product like Persil with a name symbol or a design which makes it instantly recognisable .

Question 22

Outline the features of a brand

Answer 22

Brands have unique logos and packaging

Branded products are seen to be of high quality

Branded loyalty can be created

branded products are easily recognisable

Branded products help manufactures keep or increase their market share.

Branded products can be sold at a higher price or premium price than similar products because the quality of the product is usually higher and because these brands are heavily advertised, and customers are therefore more aware of the advantages claimed for these products.

Question 23

Identify examples of brands

Answer 23

Kellogg’s nescafe Nike coca cola persil Heinz Cadbury

Question 24

Outline the benefits of branding

Answer 24

1 higher prices can be charged for branded products

2. Brands generate brand loyalty and mean greater sales
3. brands are perceived to be of a higher quality

4 Brands are instantly recognisable

5 Brands generate repeat business

6 Brands reduce the need for advertising

7 Brands make it easier for a business to launch a new product under the same brand name as they are perceived to be of a high standard and reliable.

Question 25

Describe own brands

Answer 25

Own brands are products which are sold under the name of a supermarket or other retailer, rather than under the name of the manufacturing firm

Question 26

Outline the features of own brands

Answer 26

own brands are usally cheaper than branded products own brands are usually seen as being of inferior quality own brands appeal to the sector of the market to whom price is important

Question 27

Identify the 4 stages of the product life cycle

Answer 27

introduction growth matority decline

Question 28

Describe the 4 stages of the product life cycle

Answer 28

the product is just launched onto the market and is making a loss for the business. Growth sales are rapidly increasing the product is also becoming more known the product is beginning to make a profit. Maturity sales are at their peak and profit levels are at their highest the producty is well established in the market competitours are introducting produce to compete with ours Decline sales and profits are falling rapidly there are more rivial products on the market the product becomes out of date .

Question 29

Outline the advantages of packagin

Answer 29

can protect during transportation/delivery can increase the shelf life of the product particluallry for food items can make the product for attraqtive and encourage customers to buy can provide nutrtional information and health guidance can inform the customer how to sucessfully use/install the product.

Question 30

Outline the disadvantages of packaging

Answer 30

Distinctive packaging could be copied by won brands pressure to use envirnmentally friendly packaging may lead to higher costs. If Distinctive packaging is littered it could create a negative reputation eg starbucks cups on the street Government legislation may force you to put certain information on packaging which highlights how unhealthy the product is eg traffic light indicators