Marketing

Question 1

Define Marketing

Answer 1

Marketing is identifying customer wants and satisfying them profitably

Question 2

Define Customer

Answer 2

A person, business or other organization which buys goods or services from a business

Question 3

Define customer loyalty

Answer 3

When existing customers continually buy products from the same business

Question 4

Define customer relationships

Answer 4

Communicating with customers to encourage them to become loyal to the business and its products

Question 5

Define Market share

Answer 5

The percentage of total market sales held by one brand or business

Question 6

Define Consumer

Answer 6

A consumer buys goods or services for personal use (not to re-sell)

Question 7

Define Mass market

Answer 7

Where there is a very large number of sales of a product

Question 8

Define niche market

Answer 8

A small, usually specialized, segment of a much larger market

Question 9

Define Market segment

Answer 9

An identifiable sub-group of a whole market in which consumers have similar characteristics or preferences

Question 10

State the stages of the product life cycle

Name all

Answer 10

1. Developed
2. Introduced
3. Grow
4. Maturity
5. Saturation
6. Decline

Question 11

Sate the ways you can extend a product’s life cycle

At least five

Answer 11

1. Introduce new variations
2. Introduce improved version of the product
3. Sell into new markets
4. Sell through more retail outlets
5. Change product’s design
6. Use new advertising campaign

Question 12

What are the 4 elements of the marketing mix

Answer 12

Product
Price
Place
Promotion

4Ps

Question 13

Define USP

Answer 13

The special feature of the product that differentiates it from the products of its competitors

Question 14

Define brand name

Answer 14

Unique name of a product that distinguishes it from other beands

Question 15

Define Brand loyalty

Answer 15

When consumers buying the same brand again and again instead of choosing a competitor’s brand

Question 16

Define Brand image

Answer 16

An image or identity given to a product which gives it a personality of its own

Question 17

Define Cost-plus pricing

Answer 17

The cost of manufacturing the product plus a profit mark-up

Basically profit

Question 18

Define competitive pricing

Answer 18

When the product is priced in line with or just below competitors’ prices to try to capture more of the market

Question 19

Define Penetration pricing

Answer 19

When the price is set lower than the competitors’ prices in order to be able to enter a new market

Question 20

Define Price skimming

Answer 20

Where a high price is set for a new product on the market

Question 21

Define Promotional pricing

Answer 21

When a product is sold at a very low price for a short amount of time

Question 22

Define Dynamic pricing

Answer 22

When businesses change product prices usually when selling online, depending on the level of demand

Question 23

Define Price elastic demand and Price inelastic demand

Answer 23

PED=Consumers are very sensitive to price changes
PID=Consumers are not sensitive to price changes

Question 24

Define distribution channel

Answer 24

Which a product is passed from the place of production to the customer

Wholesalers, Retailers…

Question 26

Define Agent (distribution channel)

Answer 26

An independant person or business that is appointed to **deal with the *sales and distribution*** of a product or range of products

Question 27

State the medians of distribution | At least five. C'mon

Answer 27

* Department stores * Chain stores * Discount stores * Superstores * Supermarkets * Independant retailers * Direct sales * Mail order * Internet

Question 28

Define promotion

Answer 28

Where marketing **activities** aim to **raise customer awareness of a product or brand**, generating sales and helping them to create brand loyalty.

Question 29

State the aims of promotion | At LEAST five

Answer 29

* Create brand image * Inform people about issues * Introduce new products on to the market * Increase sales * **Compete with competitors** * Improve company image

Question 30

Define Advertising

Answer 30

Paid for **communication** with potential customers about product to encourage them to buy it.

Question 31

What is Informative and persuasive advertising

Answer 31

* Informative advertising=give full information about the product * Persuasive advertising=Persuade customers that they really need the product.

Question 32

Define Target audience

Answer 32

Refers to the people who are **potential buyers** of a product of service

Question 33

State the modes of advertisement | AT LEAST FIVE

Answer 33

* Television * Radio * Newspaper * Magazines * Billboards * Cinema/DVD * Leaflets * Internet

Question 34

Define sales promotion

Answer 34

Incentives such as **special offers or deals** aimed at customers to achieve **short-term increase in sales**

Question 35

State the types of sales promotions | At least 5

Answer 35

1. After-sales service 1. Gifts 1. Buy-one-get-one-free (BOGOF) 1. Price reductions 1. Free samples 1. Product placement 1. Competitions 1. Point-of-sale display

Question 36

Define marketing budget

Answer 36

The **financial plan** for the marketing of a product for a **specified period of time**

Question 37

Define social media marketing

Answer 37

A form of marketing that involves **creating and sharing content** on social media

Question 38

Define Viral marketing

Answer 38

When consumers are encouraged to **share information online** about a product

Question 39

# (To Businesses) Advantages of E-commerce | Only 4 c'mon

Answer 39

* Low cost promotion * Global coverage * Able to access many customers * **Shops not needed**

Question 40

# (To Businesses) Disadvantages of E-commerce | Also only 4, You can do it

Answer 40

Updating website costs No direct consumer contact Online competition Transport costs

Question 41

Define Marketing Stategy ## Footnote COC reference :0

Answer 41

A plan to combine the right combination of the four **elements** (PPPP) for a product or service

Question 42

Explain why some business remain small

Answer 42

If they were large: 1. Can't offer close and personal services 1. Most small businesses are specialised, so it only appeal to a limited number of consumers 1. The owner's choice to keep the business small

Question 43

Reminder to not use dotted-lists in answers, unless the question asked for it

Answer 43

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