Marketing

Question 1

Segmentation

Answer 1

Dividing the market into groups based on needs and wants

Question 2

How can the market be segmented?

Answer 2

Gender, age, location, income

Question 3

Quantitative data

Answer 3

Data in the form of numbers

Question 4

Qualitative data

Answer 4

Data in the form of opinions

Question 5

Define the product life cycle.

Answer 5

A way to show how sales will vary over the life of the product

Question 6

What are the stages of the product life cycle?

Answer 6

Development
Introduction
Growth
Maturity
Decline

Question 7

What are extension strategies?

Answer 7

Strategies to maintain or increase sales of a product so that it doesn’t enter the decline stage of the PLC

Question 8

Give 7 extension strategies

Answer 8

Lower price
Advertise more
Add features to product
New packaging/limited editions
Rename
Target a new market
Encourage greater usage of a product

Question 9

Boston Matrix

Answer 9

A way of analysing a good’s market share and market growth

Question 10

Question mark
Define and give an example

Answer 10

High MG and Low MS

Question 11

Star
Define and give an example

Answer 11

High MG and High MS
Apple

Question 12

Cash cow
Define and give an example

Answer 12

Low MG and High MS
Odeon

Question 13

Dog
Define and give an example

Answer 13

Low MG and Low MS
Nokia

Question 14

What are the 4 Ps?

Answer 14

Price
Product
Promotion
Place

Question 15

Competitive pricing

Answer 15

Launching a product that is similar to a competitor’s at a similar price

Question 16

Loss leader

Answer 16

When a business sets the price below the cost of a product, hoping that it will attract customers to a shop where they buy additional products

Often used for complimentary products (e.g. costly ink and cheap printer)

Question 17

Cost plus pricing

Answer 17

Calculate cost then add a % mark-up to guarantee profit

Question 18

Penetration pricing

Answer 18

Low price that rises over time

Question 19

Price skimming

Answer 19

High price that drops over time

Question 20

Advantages of a wide product portfolio

Answer 20

Increase market share and target market
Well known products could possibly help raise awareness of another

Question 21

Disadvantages of a wide product portfolio

Answer 21

More people needed to maintain products- high cost of wages

Question 22

What channel of distribution would be appropriate for…
-Manufactured goods
-Little customer service required

Answer 22

Producer-> Wholesaler-> Retailer-> Customer

Question 23

What channel of distribution would be appropriate for…
-Manufactured goods
-Customer service required

Answer 23

Producer-> Retailer-> Customer