Content area 2

Question 1

what is marketing?

Answer 1

identifying the needs of the customer and making sure those needs are met

Question 2

what does the USP stand for?

Answer 2

unique selling point of a product/service

Question 3

what is a mass market?

Answer 3

the general market for all customers

Question 4

what is a niche market?

Answer 4

smaller markets defined by smaller groups of customers

Question 5

what is segmentation?

Answer 5

splitting the market across different customer groups

Question 6

what are characteristics of a mass market?

Answer 6

high competition, high sales, low price per unit, high demand, large customer base

Question 7

what are characteristics of a niche market?

Answer 7

less competition, low sales, high price per unit, smaller customer base

Question 8

what is the breakeven?

Answer 8

• revenue and and total costs are the same meaning the business is not making a profit or a loss

making enough money from sales to cover costs

Question 9

what is primary market research?

Answer 9

research that the business does itself and gets straight from the customer or potential customer

Question 10

what is secondary market research?

Answer 10

research that has already been completed by someone else

Question 11

what are examples of primary market research?

Answer 11

face to face questionnaire, online questionnaire, disguised observation, face to face focus groups, face to face interviews, online interviews, postal questionnaire, non-disguised observation

Question 12

what are examples of secondary market research?

Answer 12

news articles, competitor data, social trends, social media, trade journals, census data

Question 13

what is quantitative data?

Answer 13

information that is numeric data

Question 14

what is qualitative data?

Answer 14

information that is not numeric such as an opinion

Question 15

what is a profit margin?

Answer 15

the amount of profit for every £1 sold, given as a percentage

Question 16

what is sales volume?

Answer 16

the number of items sold

Question 17

what is business orientation?

Answer 17

the strategies used in the business

Question 18

what is market orientated?

Answer 18

customer led and market research led, giving the customer what they want as a priority

Question 19

what is the marketing mix?

Answer 19

also known as the 4 Ps Price, Place, Product and Promotion. its a tool used to successfully advertise a product to customers

Question 20

what is equilibrium?

Answer 20

balance

Question 21

what is dynamic pricing?

Answer 21

changing the prices to match the demands

Question 22

what is cost plus pricing?

Answer 22

a business sets the price of a product by adding a markup (a fixed amount) to the cost of production

Question 23

what is price skimming?

Answer 23

a business sets a high initial price for a new product and then gradually lowers it over time

Question 24

what is penetration pricing?

Answer 24

a business sets an initial low price for a new product to attract customers and gain market share, then gradually increases the price over time

Question 25

what is loss leader pricing?

Answer 25

a business sells a product at a loss to draw in customers, who will then purchase other profitable items (that they will make all their profit on)

Question 26

what is competitor pricing?

Answer 26

a business sets its price based on the prices set by competitors for similar products (they match, undercut or slightly exceed competitors)

Question 27

what is promotional pricing?

Answer 27

a business reduces the price of a product for a short period of time to increase demand, attract new customers or clear out stock

Question 27

what are example of promotional pricing?

Answer 27

- discounts and sales e.g. BOGOF - loyalty discounts e.g. special discounts for returning customers - coupons and vouchers e.g. £10 off your first purchase - limited time offers

Question 28

what is the channel of distribution?

Answer 28

the method a business uses to sell a product

Question 29

what is a wholesaler?

Answer 29

they buy large quantities of goods from manufacturers and then sell them in smaller quantities to the retailers

Question 29

what is a retailer?

Answer 29

they sell products directly to consumers, often in smaller quantities

Question 30

what is direct to customers?

Answer 30

the manufacturer sells directly to the consumer

Question 31

what factors affect place?

Answer 31

- the accessibility - how busy an area is - how expensive the land is - if there's ay competition nearby

Question 32

what are some promotional methods?

Answer 32

- advertising e.g. social media - sales promotion e.g. coupons, discounts, loyalty cards - direct marketing e.g. emails, flyers, messages

Question 33

what is the aim of an extension strategy for the product life cycle?

Answer 33

aim to delay the product from entering the decline stage of the product life cycle

Question 34

what is innovation?

Answer 34

generating new ideas

Question 35

what is the boston matrix?

Answer 35

a tool used to analyse product portfolio

Question 36

what does brand image mean?

Answer 36

the perception and assumptions made about a product