Part A

Question 1

Marketing

Answer 1

How a business promotes themselves to try and attract customers.

Question 2

Why is marketing needed?

Answer 2

1. Attract customer awareness
2. Create brand awareness & improve market share.
3. To make customers willingly pay more for similar p/s.

Question 3

Effective marketing should…

Answer 3

1. identify customer needs
2. promote product/product portfolio
3. show the price of the brand
4. show features of p/s.
5. promote over a variety of medias.
6. target the ‘right’ customers.
7. Distribute the p/s in the right place.
8. Create p/s that customers want.

Question 4

Principles of Marketing:

Answer 4

1. Anticipate demand.
2. Recognise demand.
3. Stimulate demand.
4. Satisfy demand.

Question 5

Anticipating demand

Answer 5

Attempting to estimate and anticipate the demand that could be generated by a marketing campaign is a key purpose of marketing.

Question 6

Problems and methods of anticipating demand:

Answer 6

Problems- difficult to estimate as too much supply could be made with a low demand or too little supply made but demand is high.
Methods- look at the impact of previous marketing campaigns, results of market research, demand for previous p/s, demand for competitors p/s, and impact of competitors marketing campaigns.

Question 7

Recognising demand

Answer 7

seeing whether demand has increased/ not following the marketing campaign.

Question 8

Satisfying demand

Answer 8

The business continues to keep the supply needed so the customers are not disappointed.

Question 9

ways of satisfying demand

Answer 9

1. carrying out marketing research.
2. compare and contrast the business against others.
3. continue to be innovative.

Question 10

Stimulating demand

Answer 10

Not just attracting customers, trying to influence existing and new customers to want to buy into the business or their p/s.

Question 11

How to stimulate demand

Answer 11

1. reduce products price at launch
2. exclusively distribute the product to particular stores or to loyal customers/members.
3. Only release a limited quantity of the product.

Question 12

aims & objectives

Answer 12

aim- a long term goal that a business hopes to achieve.
objective- a short term target that helps a business achieve its overall aims.

Question 13

Understanding customer needs

Answer 13

1. look at the business from the customers pov.
2. collect and analyse data on customer buying behaviour within their industry.
3. conduct primary research to ask customers directly what they want.

Question 14

Ways to understand customer needs:

Answer 14

1. use a mystery shopper
2. collect ad analyse data on buying behaviour using a loyalty scheme.
   Conduct primary research.

Question 15

what should happen when customer needs change?

Answer 15

1. more choice available
2. product portfolio increases/improves.
   feedback sought from customers.
   React to competitors regularly.

Question 16

Stages of developing new products

Answer 16

1.Idea generation
2.Product development
3. Development of marketing strategy
4. Test marketing
5. Product launch

Question 17

Profit

Answer 17

The positive amount of money a business is left with once all costs have been deducted .

Question 18

Improving profitability

Answer 18

1. selling more
2. attract more customers.
3. Reduce costs.
4. Find cheaper supplies.
5. Get brand awareness.
6. Maintain customer loyalty.

Question 19

Market share

Answer 19

The number of customers that a single business is able to attract.

Question 20

Improving market share

Answer 20

1. Attracting more potential customers.
2. Keep existing customers happy.
3. get customer loyalty.
4. Get more power over competitors.
5. Increase brand recognition.

Question 21

Diversification

Answer 21

Entering new markets to spread risk.

Question 22

Things to consider with diversification

Answer 22

1. Lots of research to avoid risk in the future.
2. Launching new p/s takes time and costs.
3. might cause the businesses budget to be used/might not be enough.
4. competitors may have better knowledge to diversify quicker.

Question 23

Brand

Answer 23

Where a business has specific details, like colours, logo, packaging, so the customers can identify them and stay loyal.

Question 24

Brand awareness

Answer 24

Customers being able to easily recognise a specific brand.