marketing

Question 1

product differentiation

Answer 1

unique items, performance, could also be brand image

Question 2

product portfolio

Answer 2

width and depth
range of products a business sells to meet needs of diff customers

Question 3

boston matrix

Answer 3

star - advertise/ promote it ( high market growth and share)
cash cow - no increase but still market share (high market share low growth)
dog - remove from portfolio (low market growth and share)
problem child - has issues needs fixed (low share and growth)

Question 4

ansoff matrix

Answer 4

decision making tool
market penetration
product development
market development
diversification

Question 5

product lifecycle

Answer 5

> development - making product + market research
launch
growth - sales increase, growing market share
maturity - begins to steady out
saturation - peak of sales
decline - decrease sales

Question 6

extension strategies

Answer 6

price reductions, new models, new market same product

Question 7

marketing

Answer 7

selling right product, right place, right price using right methods of promotion which is found through market research

Question 8

market research

Answer 8

gathering research about data about target markets and competitors

Question 9

primary data

Answer 9

not been gathered before
questionnaires interviews etc
+ suits your bus
- time consuming

Question 10

marketing budget

Answer 10

allocated amount of finance given to a department

Question 11

marketing department

Answer 11

finding out customer needs and wants through market research

Question 12

market research data

Answer 12

understand needs and wants and the best way to market the product

Question 13

secondary data

Answer 13

information that has already been collected
census, websites etc
+ available to everyone
- not suit your bus

Question 14

internal data

Answer 14

research produced by an employee
+ understands the bus
- no expertise

Question 15

external data

Answer 15

another organisation will do the research

Question 16

qualitative data

Answer 16

in depth open questions

Question 17

quantitative data

Answer 17

closed questions. rating. numbers can be presented

Question 18

market share

Answer 18

% of the market that the business owns
your sales/ total sales in market x 100

Question 19

market dominance

Answer 19

over 50% of the market

Question 20

market leadership

Answer 20

business with the largest market share

Question 21

market growth

Answer 21

an increase in demand for a product or service
new - old/ old x100
analyse full market not just yours

Question 22

Price (4ps)

Answer 22

how much the business sells products or services for

Question 23

cost plus pricing

Answer 23

cost of producing a single product and adding a bit on top
+ garanteed to make a profit
- can make it very expensive

Question 24

competitor pricing

Answer 24

based pricing on competitors, aims to have lowest price to attract customers
+ gain more market share
- prices are too low

Question 25

promotional pricing

Answer 25

sales/ special offers. increase short term sales to get rid of stock or gain customers + get rid of stock - not a high profit

Question 26

loss leaders

Answer 26

sells product as cost price to gain market share then raise the price to make a profit + gain market share - a loss at first

Question 27

destroyer pricing

Answer 27

low prices to gain customers from competitors and eliminate other businesses + eliminate competitors - may make a loss

Question 28

penetration pricing

Answer 28

entering market at a low price then when demand goes up the price does too + gains customers - demand may not increase

Question 29

price skimming

Answer 29

entering into the market at a really high price then slowly decreasing it + extension strategy - people may not pay original price

Question 30

price discrimination

Answer 30

selling products at different prices based on peoples differences eg age + attracts youngers - unfair

Question 31

price elasticity of demand

Answer 31

how much demand will go down if price goes up % change in demand/ % change in price elastic = more then one

Question 32

income elasticity of demand

Answer 32

% change in demand/ % change of income

Question 33

AIDA model

Answer 33

attention, interest (above the line promotion) desire, action (below the line, more specific promotion)

Question 34

marketing objectives

Answer 34

what the business wants to achieve through its marketing e.g. brand loyalty, increase quality