Marketing Revision

Question 1

What does the term ‘marketing’ mean in business?

Answer 1

Marketing is identifying customer needs and providing products or services to satisfy them in a profitable way.

Question 2

What is a market in the context of business?

Answer 2

A market is any place (physical or online) where buyers and sellers exchange goods and services.

Question 3

What is a product-oriented business?

Answer 3

A product-oriented business creates a product first and then looks for customers to buy it.

Question 4

What is a market-oriented business?

Answer 4

A market-oriented business researches what customers want and then creates a product to meet those needs.

Question 5

What is the purpose of market research in a business?

Answer 5

Market research collects information on customers, competitors, and products to help define target markets, set prices, and avoid wasting resources.

Question 6

What is primary (field) research in marketing?

Answer 6

Primary research gathers first-hand data directly from potential customers, such as through surveys or interviews.

Question 7

What is secondary (desk) research in marketing?

Answer 7

Secondary research uses existing information from sources like government reports or market studies.

Question 8

What are the advantages and disadvantages of primary research?

Answer 8

Advantages: Tailored to business needs Up-to-date
Disadvantages: Time-consuming Costly

Question 9

What are the advantages and disadvantages of secondary research?

Answer 9

Advantages: Quick Cheap to access
Disadvantages: May be outdated Not fully relevant

Question 10

What is quantitative research used for in business?

Answer 10

Quantitative research collects numerical data using closed questions to produce statistics.

Question 11

What is qualitative research used for in business?

Answer 11

Qualitative research gathers opinions and attitudes using open questions.

Question 12

What is random sampling in market research?

Answer 12

Random sampling gives everyone in the population an equal chance of being selected.

Question 13

What are the pros and cons of random sampling?

Answer 13

Pros: Unbiased selection
Cons: Expensive May not target the right customers

Question 14

What is quota sampling in market research?

Answer 14

Quota sampling selects people to match certain population groups (e.g. age, gender).

Question 15

What are the pros and cons of quota sampling?

Answer 15

Pros: More accurate Likely to reach the right people
Cons: Requires accurate knowledge of population breakdown

Question 16

What is target sampling in market research?

Answer 16

Target sampling focuses on a specific group of customers within the market.

Question 17

What does market segmentation mean in business?

Answer 17

Market segmentation involves dividing customers into groups based on shared characteristics like age, income, or location.

Question 18

What are the 4Ps in the marketing mix?

Answer 18

Product, Price, Place, and Promotion.

Question 19

Why is the marketing mix important for a business?

Answer 19

A good marketing mix helps satisfy customer needs while achieving business profit.

Question 20

What are the stages of a product’s life cycle?

Answer 20

R&D, Introduction, Growth, Maturity, Saturation, Decline.

Question 21

What happens during the research and development stage of a product?

Answer 21

High costs and no sales as the product is being developed.

Question 22

What happens during the introduction stage of a product?

Answer 22

Sales are low and costs remain high due to R&D and advertising.

Question 23

What happens during the growth stage of a product?

Answer 23

Sales increase, profits begin, and competition may enter the market.

Question 24

What happens during the maturity stage of a product?

Answer 24

Sales peak, competition is high, and profits are maximized.

Question 25

What happens during the saturation stage of a product?

Answer 25

Sales stop increasing, and promotions or price reductions may be used.

Question 26

What happens during the decline stage of a product?

Answer 26

Sales fall, profits drop, and the product may be discontinued or revived.

Question 27

What are common extension strategies for a product?

Answer 27

*Modify product or packaging* *Reduce price* *Add new features* *Advertise more* *Export it*

Question 28

What is penetration pricing used for?

Answer 28

Setting a low price to attract customers and gain market share for a new product.

Question 29

What is price skimming?

Answer 29

Charging a high price for a new or innovative product to maximize early profits.

Question 30

What is competitive pricing?

Answer 30

Setting a price that matches competitors to stay competitive in the market.

Question 31

What factors influence the price of a product?

Answer 31

*Demand* *Production cost* *Need for profit* *Competition* *Season* *Product type* *Stock levels*

Question 32

What is the relationship between price and demand?

Answer 32

As price increases, demand decreases. As price decreases, demand increases.

Question 33

What can cause a change in demand for a product?

Answer 33

*Changes in price* *Customer tastes* *Income* *Advertising* *Prices of alternative goods*

Question 34

What are the main aims of promotion?

Answer 34

To inform, persuade, and reassure customers.

Question 35

What are common promotional methods?

Answer 35

*Advertising* *Public relations* *Sponsorship* *Sales promotions*

Question 36

Why do businesses use advertising?

Answer 36

To launch new products, remind customers about existing ones, or target new audiences.

Question 37

What are examples of advertising media?

Answer 37

*TV* *Radio* *Newspapers* *Internet* *Posters* *Events* *Product packaging*

Question 38

What are examples of sales promotion techniques?

Answer 38

*Discounts* *Special offers* *Coupons* *Loyalty cards* *Free samples* *Point-of-sale displays*

Question 39

What is sponsorship in marketing?

Answer 39

A business funds events in return for brand visibility.

Question 40

What is public relations (PR) in marketing?

Answer 40

Creating a positive public image through actions like charity work or press releases.

Question 41

What are the advantages of using social media for marketing?

Answer 41

*Direct customer contact* *Global reach* *Up-to-date image* *Feedback from customers*

Question 42

What are the disadvantages of using social media for marketing?

Answer 42

*Negative reviews can harm image* *Need for constant online presence*

Question 43

What does ‘place’ refer to in the marketing mix?

Answer 43

How the product gets from the producer to the customer.

Question 44

What are common distribution channels for products?

Answer 44

*Manufacturer > Wholesaler > Retailer > Consumer* *Manufacturer > Retailer > Consumer* *Manufacturer > Consumer*

Question 45

What factors affect the choice of distribution channel?

Answer 45

*Product type* *Cost* *Lifespan* *Demand* *Customer expectations*

Question 46

What does the Consumer Rights Act state?

Answer 46

Goods must be of satisfactory quality, fit for purpose, and match their description.

Question 47

What is the Trade Descriptions Act?

Answer 47

Businesses must not give false or misleading information about products or services.

Question 48

What does the Consumer Protection Act do?

Answer 48

Protects consumers from unsafe products; allows injured customers to sue manufacturers.

Question 49

Which organisations monitor advertising in the UK?

Answer 49

*ASA (Advertising Standards Authority)* *OFCOM (for media and broadcasting)*

Question 50

How does competition benefit businesses?

Answer 50

Encourages improvements, innovation, and greater efficiency.

Question 51

How does competition benefit customers?

Answer 51

Leads to better prices, more choices, and improved product quality.

Question 52

What is customer service in a business?

Answer 52

The help and support given to customers before, during, and after a purchase.

Question 53

Why is good customer service important for a business?

Answer 53

Builds loyalty, encourages repeat business, and saves money compared to finding new customers.

Question 54

What is international trade in business?

Answer 54

Buying and selling goods and services across national borders.

Question 55

What are the benefits of international trade?

Answer 55

*Access to larger markets* *More customers*

Question 56

What are the drawbacks of international trade?

Answer 56

*Issues with language* *Culture* *Exchange rates* *Transport*

Question 57

How should businesses adapt their marketing mix for global trade?

Answer 57

Modify the 4Ps to suit different laws, languages, customer needs, and transport challenges.

Question 58

What is e-business?

Answer 58

Conducting business over the internet between buyers and sellers.

Question 59

What are the benefits of e-business for businesses?

Answer 59

*24/7 sales* *Global reach* *No need for physical stores*

Question 60

What are the disadvantages of e-business for businesses?

Answer 60

*More competition* *Logistics challenges* *Legal compliance abroad*

Question 61

What are the benefits of e-business for customers?

Answer 61

*More convenience* *Wider choice* *Often lower prices*

Question 62

What are the disadvantages of e-business for customers?

Answer 62

*Security risks* *Can’t check quality in person* *Return difficulties*

Question 63

What is m-business (mobile business)?

Answer 63

Using mobile technology for business operations like sales and communication.

Question 64

What are the advantages of m-business for businesses?

Answer 64

*Real-time communication* *More payment options* *Higher efficiency*

Question 65

What are the disadvantages of m-business for businesses?

Answer 65

*High tech costs* *Training needs* *Security concerns*

Question 66

What are the advantages of m-business for customers?

Answer 66

*Convenience* *Faster communication* *Mobile access to products*

Question 67

What are the disadvantages of m-business for customers?

Answer 67

*Expensive mobile data* *Security risks* *Unwanted marketing messages*