Business: Unit 3-Marketing

Question 1

customer

Answer 1

a business or person which buys goods or services from a business

Question 2

customer loyalty

Answer 2

when customers continually buy from a business

Question 3

customer relationships

Answer 3

communicating with customers to encourage them to become loyal to the business

Question 4

marketing

Answer 4

identifying customer wants and satisfying them profitably

Question 5

role of marketing

Answer 5

• identify customer needs
• satisfy customer needs
• maintain customer loyalty
• customer relationships
• gain info about customers
• anticipate changes in cutomer needs

Question 6

why do we use marketing(benefits to the business)(5)

Answer 6

• raise customer awareness of product/service
• increase market share
• increase revenue and profitability
• develop new products/improve existing ones
• enter new markets

Question 7

what drives change in consumer spending patterns (4)

Answer 7

• population characteristics
• technology
• consumer tastes in fashion
• income

Question 8

for a business to stay competitive, it must (4)

Answer 8

• maintain good customer relationships
• keep improving existing product
• bring out new products
• keep costs low to mantain competitiveness

Question 9

market(who is it made up of)

Answer 9

made up of total number of customers and potential customers and sellers for that particular good/service

Question 10

mass market

Answer 10

a very large numbe of sales of a product

Question 11

niche market

Answer 11

a small, specialised segment of a much larger market

Question 12

market segment

Answer 12

an identifiable sub-group of a whole market in which consumers have similar characteristics of preferances

Question 13

market segmentation(6)

Answer 13

age
gender
lifestyle
use of product
religion
income

Question 14

primary research(3 +, 2-)

Answer 14

information the firm itself has made that is related directly to the preson/company being researched
e.g: questionnaires, interviews, samples

+detailed information
+inexpensive
+detailed answer

• can take lots of time
• interviewer might influence interviewee

Question 15

secondary research(2 +, 3-) and 2 subgroups

Answer 15

information that has already been collected and is available to others

internal sources: within firms own sources
external sources: outside the business

+cheaper
+some info can’t be obtained from primary research

• broad results
• data might be outdated or innacurate
• might not have the info youre looking for

Question 16

new product cycle (6 steps)

Answer 16

1. generate ideas
2. select best ideas
3. decide if company will be able to sell enough
4. develop prototype
5. launch prototype in one area
6. go to full launch

Question 17

new product(4 +, 4-)

Answer 17

+unique selling point
+diversification
+expand into new markets
+expand into existing market

• costs of market research
• costs of trial products
• lack of sales if target market is wrong
• potential loss of company image

Question 18

unique selling point

Answer 18

special feature of a product that differenciates it

Question 19

brand name

Answer 19

unique name of a product

Question 20

brand loyalty

Answer 20

consumers keep buying the same brand again and again withoout choosing a competitor’s brand

Question 21

brand image

Answer 21

image or identity given to a product which gives it a personality of its own and distinguishes it from competitor’s brands

Question 22

product life cycle(6)

Answer 22

development
introduction
growth
maturity
saturation
decline

Question 23

5 types of pricing and definition

Answer 23

cost plus-cost of manufacturing+profit
competitive-price justbelow competitors
penetration-price lower than competitors
price skimming- high price for new products
promotion-very low price

Question 24

price elasticity

Answer 24

measurement of how responsive the market is when there is a change of price in a product

Question 25

price-elastic demand

Answer 25

the percentage of loss is greater than the percentage of increase in price

Question 26

price-inelastic demand

Answer 26

the percentage of loss is smaller than the percentage of increase in price

Question 27

producer---> consumer

Answer 27

+simple +lower price for customer - impractical(consumers don't live near factories) - not good for products that can't be sent by post

Question 28

producer-->retailer--> consumer

Answer 28

+producer can sell large quantities +reduced distribution costs - no direct contact wiht costumers - price is higher

Question 29

producer-->wholesaler-->retailer-->consumer

Answer 29

+using a wholesaler saves storage space +small retails can purchase fresh products in small quantities +wholesaler can give advice to retailer - may be expansive for a small shop - takes longer for fresh produce to reach shops - wholesaler may be far from shop - consumer price is higher

Question 30

producer-->agent-->wholesaler-->retailer-->consumer

Answer 30

+manufacturer can be helped by agent to sell in other markets +agents are aware of local conditions->they can select the best place to sell in -producer has less control over the way the product is sold to customers

Question 31

promotion

Answer 31

publicizing a product/brand to increase customer awareness or increase sales

Question 32

aims of promotion

Answer 32

``` create a brand image introduce a new product into a market increase competition improve a company's image increase sales ```

Question 33

advertisement

Answer 33

informative advertisement: propotion focuses on giving information about a product persuasive advertisement: promotion focuses on convincing the customer that really need the product

Question 34

target audience

Answer 34

people who are potential buyers of a product/service

Question 35

advertising process(5 steps)

Answer 35

1. set objectives 2. decide advertiement budget 3. create advertisement budget 4. select the media to use 5. evaluate effectiveness of campaign

Question 36

advertising media

Answer 36

television, radio, newspaper, magazines, billboards, cinema/DVD, leaflets

Question 37

sales promotion

Answer 37

using incentives to increase sales | -sales, gifts, free samples

Question 38

e-commerce

Answer 38

when you buy or sell goods/services on the internet

Question 39

advantages/disadvantages of e-commerce to a business

Answer 39

+ low cost promotion +everything can be automated +businesses can buy from other businesses - competition is very high - website design has to be attractive & easy to use - transport costs are giher - no direct contact with customers

Question 40

advantages/disadvantages of e-commerce to consumers

Answer 40

+competition makes prices cheaper +don't need to leave the house to buy products +payment is very easy +easy to compare prices - need access to internet - slow servers can frustrate customers - products can't be seen or touched