Marketing

Question 1

Define marketing

Answer 1

Is identifying customer needs and wants and meeting those needs by the primary aim of increasing sales whilst also making a profit

Question 2

What are the 4 ps of the marketing mix?

Answer 2

Price
Place
Product
Promotion

Question 3

Define promotion

Answer 3

Collection of techniques used to inform and persuade consumers to buy a product or service

Question 4

What are the 2 parts of promotion?

Answer 4

Above the line promotion
Below the line promotion

Question 5

What is above the line promotion?

Answer 5

Media where no direct contact with the customer = TV, radio, magazines

Question 6

What is below the line promotion?

Answer 6

Business can directly contact the potential customer= emails, phone calls

Question 7

What are the advantages of using TV for promotion?

Answer 7

Target your audience between certain times of day
It is visual and sound aspects are easy to remember

Question 8

What are the disadvantages of using TV for promotion?

Answer 8

You can’t update the adverts if they are outdated
Expensive compared to other ways and you can skip adverts

Question 9

What are the advantages of using billboards for promotion?

Answer 9

Place it where there are busy roads, motorways
More cost effective than TV

Question 10

What are the advantages of using radio for promotion?

Answer 10

Radio stations can be chosen to target specific demographics or locations
Can be created and aired quickly meaning they are a good choice for time sensitive promotions

Question 11

What are the disadvantages of using radio for promotion?

Answer 11

Listeners may tune out of commercial or change the channel
There are no visuals so difficult to convey complex info

Question 12

What are the advantages of using magazines for promotion?

Answer 12

Tactile experience- engages multiple senses
Can reach a targeted audience

Question 13

What are the disadvantages of magazines for promotion?

Answer 13

No guarantee that anyone will see your ad they could flick past it

Question 14

What are the advantages of cinema for promotion?

Answer 14

Cinema audiences are focused on film experiences making less likely to avoid ads
You can measure the success of ad by assessing audience reach and engagement

Question 15

What are the disadvantages of cinema for promotion?

Answer 15

Short life span- only a few people will see
Small organisations will struggle to employ this

Question 16

Define brand

Answer 16

A name, sign, symbol linked to a particular product or service in order to differentiate from competitors

Question 17

Define personal selling

Answer 17

Direct link between the customer and the sales person eg. Door to door sales

Question 18

Define viral marketing

Answer 18

Involves the use of social media to increase brand awareness

Question 19

Define drip marketing

Answer 19

Automated process- send messages to customers to move them through the sales cycle

Question 20

What is the product life cycle?

Answer 20

Theoretical model which describes the stages that a product goes through over time

Question 21

What are the 4 stages of the product life cycle?

Answer 21

Introduction
Growth
Maturity
Decline

Question 22

What happens in introduction stage?

Answer 22

Not much sales as not many customers are aware of the product
Cash flow may be a problem
May use penetration pricing

Question 23

What happens in the growth stage?

Answer 23

Sales increasing
Competitions becoming more interested they may enter the market with their own product
More distribution of the product

Question 24

What happens in maturity stage?

Answer 24

Weaker competitors leave the market
Cash flow likely positive

Question 25

What happens in the decline stage?

Answer 25

Become less popular other new products are released that replace the old ones Prices may be drastically reduced to sell any remaining stock

Question 26

What is the extension strategy?

Answer 26

This makes the product life longer keeping it from declining for a bit longer

Question 27

What are some strategies to extend product life?

Answer 27

Advertising Price reduction Explore new markets

Question 28

Define product positioning

Answer 28

Plotting a grid where each product sits on sales based on 2 important feature of a market

Question 29

Define Boston matrix

Answer 29

A business with a range of products has a portfolio of products- must decide how to allocate investment across the portfolio

Question 30

What are the 4 different categories in the Boston matrix?

Answer 30

Question marks Stars Dogs Cash cow

Question 31

What are stars in the Boston matrix?

Answer 31

High growth products which need heavy investment to sustain growth- growth will slow and stars become cash cows

Question 32

What are cash cows in the Boston matrix?

Answer 32

Low growth products- high market share Mature, successful products with little need for investment- milk for profits

Question 33

What are question marks in Boston matrix?

Answer 33

Low market share in high growth market Have potential need lots of investment to grow market share

Question 34

What are dogs in the Boston matrix?

Answer 34

Low market share, low growth market- may generate enough cash to break even but not worth investing Usually sold or withdrawn from sale

Question 35

What would be evaluation point for Boston matrix?

Answer 35

Too many stars may be a drain on financial resources as require large funds to maintain their position in the growth market Not suitable for all business eg. Service sector- restaurant= no tangible product rely on good customer reviews and word of mouth

Question 36

What are the 3 aspects of value analysis?

Answer 36

Function Aesthetics Cost of production

Question 37

What is cross elasticity of demand (XED)?

Answer 37

Measures the responsiveness of demand for good X following a change in the price of a related good Y

Question 38

What is the equation to calculate XED?

Answer 38

Percentage change in demand for good X / percentage change in price for good Y

Question 39

What does it mean if there is a higher value of XED?

Answer 39

The two goods are fairly close substitute products

Question 40

Define market research

Answer 40

Process of discovering customers needs and wants through analysis of data about a particular market

Question 41

What are advantages of simple random sampling?

Answer 41

Everyone has an equal chance of selection

Question 42

What are the disadvantages of simple random sampling?

Answer 42

Can’t be specific

Question 43

What is quota sampling?

Answer 43

Obtain a sample that is representative of the overall population- splitting population into sub groups according to their distribution in population

Question 45

Define stratified sampling

Answer 45

Simple random sample is conducted on each sub population

Question 46

Define cluster sampling

Answer 46

Divide the population into groups based on locations or other characteristics and choosing some clusters to study

Question 47

Advantages of interviews

Answer 47

More detailed questions can be asked- follow up questions

Question 48

Disadvantages of interviews

Answer 48

Time- consuming Expensive as interviewers need to be well trained

Question 49

Advantages of surveys

Answer 49

Can offer anonymity and confidentiality= more honest and open

Question 50

Disadvantage of surveys

Answer 50

Many people don’t respond- no follow up questions

Question 51

Advantages of trials

Answer 51

Reduced risk of full scale launch if the product fails it saves costs

Question 52

Disadvantages of trials

Answer 52

Danger of competition learning about the product and coming up with a response before full launch

Question 53

Advantages of internal sales data

Answer 53

Readily available allowing businesses to make quick decisions

Question 54

Disadvantages of internal sales data

Answer 54

Limited perspective only reflects company’s own performance and not of whole market

Question 55

Advantages of market research reports

Answer 55

Develop strategies to gain competitive advantage

Question 56

Disadvantages of market research reports

Answer 56

Not always possible to predict future trends

Question 57

Advantage of newspapers and magazines

Answer 57

Reach a broad audience- target specific demographics

Question 58

Disadvantages of newspapers

Answer 58

Readers may skip adverts

Question 59

Advantages of census data

Answer 59

Comprehensive and accurate data- snapshot of demographics and characteristics

Question 60

Disadvantage of census data

Answer 60

Costly and time consuming