Marketing

Question 1

Sales Value/Volume Formula

Answer 1

Volume x Avg. Price

Question 2

Market Growth Formula

Answer 2

(Market size in year - market size in prev. year) / Market size in prev. year

Question 3

Market Share Formula

Answer 3

(Sales of a product / Total market sales) x100

Question 4

Market Size

Answer 4

Measures potential sales for a business.

Question 5

Brand Loyalty

Answer 5

Measures degree of attachment a customer has for a brand.
Adv: 
- Regular repeat purchases
- Less advertising req.
- Higher prices can be charged

Question 6

Benefits of Marketing Objectives

Answer 6

• Measure of success/failure
• Gives staff sense of purpose
• Can measure efficiency

Question 7

External influences on Marketing Decisions

Answer 7

• Political factors
• Economic factors
• Sociological factors
• Technological factors

Question 8

Internal influences on Marketing Decisions

Answer 8

• Finance
• Human Resources
• Operational Issues

Question 9

Primary Market Research Methods

Answer 9

• Observation of customers
• Focus groups
• Surveys

Question 10

Primary Market Research Adv/Disadv

Answer 10

Adv:
- Can be used to better only your business
Disadv:
- Expensive
- Surveys may be answered dishonestly

Question 11

Secondary Market Research Sources

Answer 11

• Gov’t publications
• Newspapers
• Magazines
• Internet sources

Question 12

Secondary Market Research Adv/Disadv

Answer 12

Adv:
- Easy to access
- Cheaper than primary methods
Disadv:
- May be out of date
- No competitive advantage as research available to rivals

Question 13

Qualitative Market Research

Answer 13

Collects information about consumer’s opinions.
Adv:
- Can be used to plan for future investment
Disadv:
- Can not compare data
- Data may be distorted

Question 14

Quantitative Market Research

Answer 14

Answers 'how many' or 'how often'
Adv: 
- Data can be compared to identify trends
- Averages can be calculated
Disadv:
- Often used with a small sample size

Question 15

Market Mapping

Answer 15

Analyses markets by looking at features that distinguish different products

Question 16

Market Segmentation

Answer 16

Classification of customers into groups
Types:
- Demographic
- Geographic
- Income
- Social Class

Question 17

Market Segmentation Adv/Disadv

Answer 17

Adv:
- Consumer behaviour can be predicted
- Firms can max profits by channelling marketing at a certain segment
Disadv:
- Difficult to put customers into categories
- Hard to reach certain groups as people have common tastes

Question 18

Niche Marketing

Answer 18

Involves targeting a product at a small segment of a larger market
Adv:
- Less competition
Disadv: 
- Low profits

Question 19

Mass Marketing

Answer 19

Aimed at a whole market
Adv:
- Economies of scale can be achieved
- High revenue
Disadv:
- High number of competitors
- Expensive to enter