Marketing

Question 1

characteristics of market led

Answer 1

• high levels of market research carried out to determine the customers wants
• the business develops products based on customer wants
• market-led businesses often exist in highly competitive markets
• the marketing mix will be responsive to changes in external factors and consumer behaviour

Question 2

characteristics of product led

Answer 2

-the business produces products that they believe customers will want and try to convince them to buy them
-market research is not seen as important. There are, however, high levels of products research and development.
-

Question 3

what is consumer behaviour

Answer 3

consumer behaviour

is the thoughts consumers have and the actions they take when purchasing products

Question 4

name the sampling methods

Answer 4

• random sampling
• quota sampling
• cluster sampling
• stratified random sampling

Question 5

what is random sampling

Answer 5

this is where sampling is picked randomly

Question 6

what is quota sampling

Answer 6

this is where the researcher decides from a group of people based on criteria of specific characteristics

Question 7

what is stratified random sampling

Answer 7

this is where a sample is selected based on the targeted market

Question 8

what is cluster sampling

Answer 8

this is where the population is split into smaller groupings, usually split on geographical location.

Question 9

advantages of random sampling

Answer 9

• there is no bias shown from the researcher

- it saves time in selecting the sample

Question 10

advantages of quota sampling

Answer 10

-quick and easy method as the group is already made

Question 11

advantages of stratified random sampling

Answer 11

• sample represents the target markets

- no researchers bias as the sample is the randomised from the list of those that meet the characteristics required

Question 12

advantages of cluster sampling

Answer 12

• saves time comparing to research samples spread across in wide areas
• a cheaper method of sampling in comparisons to others

Question 13

disadvantages of random sampling

Answer 13

• the sample may not reflect the target market accurately
• it can over represent a certain segment of the market
• can be expensive as many of the calls may have to be made if the customer lists are out of date

Question 14

disadvantage of quota sampling

Answer 14

the exact sample from every group will not be randomised, which means there could be bias involved.

Question 15

what is market research

Answer 15

market research involves looking at information and finding out what competitors are doing.

Question 16

why do business do Market Research

Answer 16

businesses do market research for lots of reasons, to make sure they stay ahead of competitors, to make sure they are provide the goods and services that they customers want

Question 17

what are the types of market research

Answer 17

field research,desk research

Question 18

disadvantages of stratified random sampling

Answer 18

• takes time to work through the population lists and select the exact sample required
• the sample chosen could be geographically dispersed which adds costs to research

Question 19

Disadvantages of cluster sampling

Answer 19

-when cluster sampling the business will run the risk of the small not being very accurate enough to represent the target market

Question 20

Name the methods of field research

Answer 20

• postal survey
• telephone survey
• online survey
• a personal interview
• hall tests
• focus groups

Question 21

What are the advantages of a telephone survey

Answer 21

• it s easy to target certain customers, for example a specific location (city) the business would like more data on, so that the business can meet the locals needs
• another advantage is that the information can be easily obtained as it is received immediately, the answer can also be clarified if there is any confusion

Question 22

What are the advantages of the postal survey

Answer 22

• easy to target specific customers, for example wealthy regular buyers would be sent exclusive new products so that the company can meet their needs
• it is easier for the customer as unlike the telephone survey the customer can do it when it most convenient for them

Question 23

What are the advantages of an online survey

Answer 23

• customers can be surveyed from many different areas of the world
• there can be online softwares used to collate all the data together then have it analysed easily

Question 24

What are the advantages of hall tests

Answer 24

• there can be good quality data gathered based on the customers trial of the product, allowing for any issues to be fixed
• An inexpensive way to gather data

Question 25

What are the disadvantages of a hall test

Answer 25

- customers feelings and opinions may be harder to be analysed - the customers response may be slightly bias as they will feel they needs to give a positive response after being given a free product

Question 26

Disadvantages of a online survey

Answer 26

- the customers must have access to the internet - the responses may be to brief and not in enough detail for analysis for analysis to be made - there is not chance for any clarifications to be doing if needed

Question 27

Disadvantages of a postal survey

Answer 27

- the survey may be seen as junk mail and will be thrown away and ignored - the questions must be simple and easy to follow for the best results to be gathered

Question 28

Disadvantages of the telephone survey

Answer 28

- customers may feel an intrusion of privacy with the survey and choose to ignore it - the surveys must be short so that customers are not kept on the line for a long period of time

Question 29

What is the marking mix (7p’s)

Answer 29

``` Product Price Place Promotion People Process Physical evidence ```

Question 30

What are the stages of a product life cycle (chronological order)

Answer 30

``` Development Introduction Growth Maturity Saturation Decline ```

Question 31

Description of the development stage

Answer 31

The product at this stage is being research and developed. Here prototypes will be made and tested. Changes may be made after they’ve had feedback, there is no sales being made as the product is still being produced, the product will be currently making a loss as there is cost of development and no income from sales.

Question 32

Description of the introduction

Answer 32

The product is launched at this stage, this usually coincides with introductory advertisements to create a “hype” around the product, sales at this point are slow as customers are unsure of the product, at this point the product will being to reduce the loss but promotional costs will still result in overall loses

Question 33

Description of the growth stage

Answer 33

The product has been on the market for some time, customers are aware of the product and are regularly being bought, sales are rising rapidly there isn’t a lot of competition in the products market aswel, at this point profits will finally begin to be made and production and promotional costs have been payed off

Question 34

Description of the maturity stage

Answer 34

The product has been in the market for a long time and there is now more competition in the market. The sales have peaked and have levelled out, many sales can still be made at this point and for a decant while afterwards, the competition is beginning to steal some sales causing a slight dip in sales and profits

Question 35

Description of the saturation stage

Answer 35

The product will suffer from too many competitors in the market, the sales will begin to fall as customers opt for other competitors products, the profits will rapidly fall and especially if prices are lowered to encourage customers to buy

Question 36

Description of the decline stage

Answer 36

The product here is nearing the end of there life cycle and will stop being produced, sales here fall rapidly and eventually the product will be withdrawn from the market. Profits continue to fall. Eventually the product may be sold at unit cost just to break even