Chapter 7: Marketing

Question 1

Product portfolio

Answer 1

The range of products sold by a business

Question 2

Target Market

Answer 2

The group of consumers aimed at by the business

Question 3

Diversify

Answer 3

Spreading risk by selling in different markets

Question 4

Product Life Cycle

Answer 4

The lifespan of a product, recorded in sales from launch to being taken off the market

Question 5

Extension Strategies

Answer 5

Steps taken to extend the life cycle or the product

Question 6

Competitive Pricing

Answer 6

Setting a price for a product based on prices charged by competitors

Question 7

Price Skimming

Answer 7

Setting a price at a high level to create a high-quality and exclusive image

Question 8

Cost Plus Pricing

Answer 8

Setting a price by adding a profit mark up

Question 9

Loss Leader Pricing

Answer 9

Setting a price below cost hoping to gain other profitable sales

Question 10

Promotion

Answer 10

All the ways a business communicates to consumers with the aim of selling products

Question 11

Advertising

Answer 11

Communication to consumers using a television and other media encouraging them to buy a product

Question 12

Sales Promotion

Answer 12

Activities to attract consumer to a product to increase sales

Question 13

Sponsorship

Answer 13

A business pays for an activity or an event to gain publicity

Question 14

Wholesaler

Answer 14

Middleman or distributor that buys in a bulk

Question 15

Telesales

Answer 15

Selling through a telephone contact alone

Question 16

Mail Order

Answer 16

Direct marketing through mail shots