Theme 1

Question 1

What is a market?

Answer 1

A market is where buyers and sellers come together to exchange goods or services.

Question 2

Define mass market.

Answer 2

A large, broad market with products that appeal to a wide audience.

Question 3

Provide an example of a mass market product.

Answer 3

Coca-Cola sells the same product worldwide with minimal changes.

Question 4

What is a niche market?

Answer 4

A small, specialized market targeting a specific group.

Question 5

Provide an example of a niche market product.

Answer 5

Vegan protein powders for athletes.

Question 6

Define market size.

Answer 6

Total sales volume or value in a market over a time period.

Question 7

What is market share?

Answer 7

A firm’s percentage of total sales in the market.

Question 8

How is market share calculated?

Answer 8

Market Share = (Firm’s Sales / Total Market Sales) × 100

Question 9

What is the purpose of market research?

Answer 9

To understand customer needs, reduce risk, and make informed decisions.

Question 10

What is primary research?

Answer 10

Data collected first-hand (e.g., questionnaires, interviews).

Question 11

What is secondary research?

Answer 11

Existing data (e.g., reports, internet, government stats).

Question 12

What type of data is quantitative?

Answer 12

Numbers/statistics (e.g., ‘70% of people prefer X’).

Question 13

What type of data is qualitative?

Answer 13

Opinions/motivations (e.g., customer interviews or focus groups).

Question 14

Define random sampling method.

Answer 14

Equal chance for anyone to be chosen.

Question 15

Define stratified sampling method.

Answer 15

Divided into sub-groups based on demographics.

Question 16

Define quota sampling method.

Answer 16

Specific number from each segment is selected.

Question 17

What is product orientation?

Answer 17

Focuses on product innovation before customer needs.

Question 18

Provide an example of product orientation.

Answer 18

Apple with the first iPhone.

Question 19

What is market orientation?

Answer 19

Focuses on identifying and satisfying customer needs.

Question 20

Provide an example of market orientation.

Answer 20

McDonald’s changing menu to suit different countries.

Question 21

What does STP stand for?

Answer 21

Segmentation, Targeting, and Positioning.

Question 22

What is segmentation in marketing?

Answer 22

Dividing the market into groups (by age, gender, income, etc.).

Question 23

What is targeting in marketing?

Answer 23

Selecting which segment to focus on.

Question 24

What is positioning in marketing?

Answer 24

Creating a distinct image in consumers’ minds (via market maps).

Question 25

Define demand.

Answer 25

The quantity consumers are willing to buy at a certain price.

Question 26

Define supply.

Answer 26

The quantity producers are willing to sell at a certain price.

Question 27

What is equilibrium price?

Answer 27

Where supply equals demand on a graph.

Question 28

What does price elasticity of demand (PED) measure?

Answer 28

How demand changes with price.

Question 29

How is PED calculated?

Answer 29

PED = % change in quantity demanded / % change in price.

Question 30

What is an elastic demand?

Answer 30

Elastic (>1): Luxury items, many substitutes.

Question 31

What is an inelastic demand?

Answer 31

Inelastic (<1): Necessities, fewer substitutes.

Question 32

Provide an example of elastic demand.

Answer 32

A 10% price drop leads to 15% increase in demand → PED = -1.5 (elastic).

Question 33

What does income elasticity of demand (YED) measure?

Answer 33

YED = % change in demand / % change in income.

Question 34

What are normal goods?

Answer 34

Positive YED (demand rises with income).

Question 35

What are inferior goods?

Answer 35

Negative YED (demand falls as income rises).

Question 36

Provide an example of an inferior good.

Answer 36

Instant noodles.

Question 37

Provide an example of a normal good.

Answer 37

Organic food.

Question 38

What are the stages of the product life cycle?

Answer 38

Development → Introduction → Growth → Maturity → Decline.

Question 39

What are extension strategies?

Answer 39

Rebranding, new uses, changing packaging or pricing.

Question 40

What does the Boston Matrix assess?

Answer 40

Products by market growth & market share.

Question 41

What are stars in the Boston Matrix?

Answer 41

High share, high growth.

Question 42

What are cash cows in the Boston Matrix?

Answer 42

High share, low growth.

Question 43

What are question marks in the Boston Matrix?

Answer 43

Low share, high growth.

Question 44

What are dogs in the Boston Matrix?

Answer 44

Low share, low growth.

Question 45

What does above-the-line promotion include?

Answer 45

Mass advertising (TV, radio).

Question 46

What does below-the-line promotion include?

Answer 46

Direct methods (sales promo, sponsorship, PR).

Question 47

Provide an example of a company using both above-the-line and below-the-line promotion.

Answer 47

Coca-Cola uses both TV ads and social media giveaways.

Question 48

What is cost-plus pricing?

Answer 48

Price = Cost + markup.

Question 49

What is skimming pricing strategy?

Answer 49

High price during launch to maximise profits.

Question 50

What is penetration pricing strategy?

Answer 50

Low intro price to gain market share.

Question 51

What is psychological pricing?

Answer 51

Setting prices just below a round number (e.g., £1.99 instead of £2).

Question 52

What is predatory pricing?

Answer 52

Very low price to eliminate competition (illegal if proven intent).

Question 53

What is dynamic pricing?

Answer 53

Changes based on demand (e.g., airlines).

Question 54

What are the distribution methods?

Answer 54

Direct, Indirect, Multichannel.

Question 55

What does direct distribution mean?

Answer 55

Manufacturer → Consumer.

Question 56

What does indirect distribution mean?

Answer 56

Manufacturer → Retailer → Consumer.

Question 57

Provide an example of a company using multichannel distribution.

Answer 57

Apple sells via own stores and retailers like Currys.

Question 58

What is a flexible workforce?

Answer 58

Part-time, freelance, remote.

Question 59

What is dismissal?

Answer 59

Fired for misconduct.

Question 60

What is redundancy?

Answer 60

Job is no longer needed.

Question 61

What does Taylor's motivation theory emphasize?

Answer 61

Workers are motivated by money.

Question 62

What does Mayo's motivation theory emphasize?

Answer 62

Workers motivated by social needs.

Question 63

What is Maslow's hierarchy of needs?

Answer 63

A theory that prioritizes needs from basic to self-actualisation.

Question 64

What are hygiene factors according to Herzberg?

Answer 64

If absent, demotivate (e.g., pay, working conditions).

Question 65

What are motivators according to Herzberg?

Answer 65

Drive satisfaction (e.g., recognition, achievement).

Question 66

What are financial motivation methods?

Answer 66

Bonuses, commission, profit-sharing.

Question 67

What are non-financial motivation methods?

Answer 67

Job enrichment, empowerment, flexible hours.

Question 68

What is an autocratic leadership style?

Answer 68

Leader makes decisions alone.

Question 69

What is a democratic leadership style?

Answer 69

Group participation.

Question 70

What is a paternalistic leadership style?

Answer 70

Leader acts in staff’s best interest.

Question 71

What is a laissez-faire leadership style?

Answer 71

Minimal leadership input, team autonomy.

Question 72

What are the roles of an entrepreneur?

Answer 72

Spot business opportunities, take calculated risks, organise resources, innovate.

Question 73

What is the focus of business objectives related to survival?

Answer 73

Early-stage focus.

Question 74

What does profit maximisation aim for?

Answer 74

Maximise difference between revenue and cost.

Question 75

What does growth in business objectives refer to?

Answer 75

Increase sales, market share or expansion.

Question 76

What are social objectives in business?

Answer 76

Environmental goals, charity.

Question 77

Define sole trader.

Answer 77

One person owns, unlimited liability.

Question 78

Define partnership.

Answer 78

Shared ownership, profits and losses.

Question 79

What is a private limited company (Ltd)?

Answer 79

Limited liability, shares privately held.

Question 80

What is a public limited company (Plc)?

Answer 80

Public company, shares on stock exchange.

Question 81

What is a franchise?

Answer 81

License business model from franchisor (e.g., McDonald’s).

Question 82

What is organic growth?

Answer 82

Internal expansion (e.g., new stores).

Question 83

What is inorganic growth?

Answer 83

Mergers, acquisitions.

Question 84

What is intrapreneurship?

Answer 84

Innovation from within the business (employee-driven ideas).