Unit 2 Chapter 5

Question 1

marketing

Answer 1

the process of implementing strategies to price, promote, and distribute products to current and potential customers.

Question 2

customer base

Answer 2

a group of consumers who continuously purchase goods and services from a business.

Question 3

customer profile

Answer 3

a specific description of the type of person a business is selling to.
○ Demographic characteristics
○ Psychographic characteristics
○ Geographic characteristics

Question 4

business objectives

Answer 4

the goals a business intends to achieve
○ Increasing sales
○ Increasing market share
○ Improving customer satisfaction
○ Increasing profit

Question 5

internal environment

Answer 5

involves factors within a business that a business has control over

Question 6

corporate culture

Answer 6

the shared values and beliefs of a business and its employees

Question 7

operating environment

Answer 7

the primary external factors impacting a business which it has some control over

Question 8

macro environment

Answer 8

social, legal, technological and economic conditions that a business has no control over

Question 9

social factors

Answer 9

societal beliefs, behaviours, trends etc.

Question 10

market research

Answer 10

the process of investigating
and analysing the activities
and behaviours of
customers and competitors
in a specific industry.

Question 11

market research analyst

Answer 11

a marketing specialist who gathers and investigates customer information

Question 12

primary data

Answer 12

information that is
collected for the first time
by the business for its
research purpose.

Question 13

secondary data

Answer 13

information that has
already been collected for
another purpose

Question 14

Quantitative data

Answer 14

information that can
be measured in numbers
and figures

Question 15

Qualitative data

Answer 15

information that is
descriptive and nonnumerical

Question 16

survey

Answer 16

a research
method that involves
asking questions to collect
data from a group
of people

Question 17

market dimensions

Answer 17

an indication of the
total number of potential
customers who could
purchase a product
from a business in a
particular market

Question 18

niche market

Answer 18

a small,
specialised market for a
particular product

Question 19

mass market

Answer 19

a large market for goods
and services produced
on a substantial scale,
for a significant number
of consumers

Question 20

Market segmentation

Answer 20

the process of dividing
a market into different
groups of consumers
that share similar
characteristics

Question 21

target market

Answer 21

a specific group of
consumers that a business
aims its marketing efforts
towards

Question 22

primary target market

Answer 22

a business’s main
target market, to which
it will exhaust most of its
marketing efforts.

Question 23

secondary target market

Answer 23

a smaller segment
of the market that is the
second-most likely group
of customers to purchase
a business’s goods or
services

Question 24

consumer behaviour

Answer 24

the actions of those
who purchase goods and
services for consumption

Question 25

consumer trends

Answer 25

developed patterns in consumer behaviours, attitudes, and values.

Question 26

product 

Answer 26

a good or service that is offered to consumers to satisfy a need or want.

Question 27

tangible product

Answer 27

a physical product that has the ability to be touched and stored.

Question 28

intangible product

Answer 28

a non-physical product that cannot be touched or stored.

Question 29

Price

Answer 29

the amount that a customer pays for a good or service.

Question 30

Product image

Answer 30

the consumer perception associated with a given product.

Question 31

profit margin

Answer 31

the percentage of revenue remaining after expenses have been deducted.

Question 32

Unit cost

Answer 32

the cost of producing one unit of a particular good or service.

Question 33

place

Answer 33

an element of the marketing mix relating to how a business distributes its product to customers.

Question 34

distribution channel

Answer 34

a chain of intermediary businesses through which products travel through to reach the end consumer

Question 35

Intermediaries

Answer 35

individuals or businesses that serve to transfer a product in a distribution channel from a manufacturer to the end consumer.

Question 36

wholesaler

Answer 36

a business that sells products in larger quantities and at lower prices than retailers.

Question 37

retailer

Answer 37

a business that sells products to the public for personal consumption.

Question 38

Promotion

Answer 38

the marketing communications used by a business to inform, promote, and remind its target market about its product.

Question 39

People

Answer 39

the individuals that influence a customer’s perception of a business and its products.

Question 40

Physical evidence

Answer 40

is the environment in which the business and customer interact

Question 41

process

Answer 41

the procedure set in place throughout the entire customer purchasing experience at a business

Question 42

the product life cycle

Answer 42

a series of stages that a product will pass through from the moment it is introduced to the market until it becomes obsolete or replaced.

Question 43

customer relations

Answer 43

the way a business creates, builds, and maintains customer relationships

Question 44

quality customer service

Answer 44

a business consistently going above and beyond expected performance to ensure customers are satisfied with their experience.

Question 45

customer loyalty programs

Answer 45

marketing initiatives that enable customers to gain benefits for frequently purchasing from a business

Question 46

technological developments

Answer 46

the invention and innovation of tools that solve problems and enhance processes.

Question 47

social media

Answer 47

the online platforms that can be used to connect with others and share content

Question 48

email marketing

Answer 48

the process of sending personalised electronic messages to existing customers to promote a business’s goods and services

Question 49

search engine optimisation

Answer 49

a process used by businesses to ensure their website ranks higher in search results when customers search for goods or services related to the business online.

Question 50

artificial intelligence

Answer 50

software that is able to mimic the behaviour of humans

Question 51

data analytics

Answer 51

the process of examining information that has been collected by businesses in order to draw conclusions and make effective decisions.

Question 52

management of data

Answer 52

the practice of collecting, organising, using, and storing data securely so businesses can use this information to make effective decisions.

Question 53

public relations

Answer 53

communicating an intended message to the public to create and sustain a positive business reputation.

Question 54

planned public relations

Answer 54

a business proactively communicating intended messages to various publics.

Question 55

proactive

Answer 55

taking action before a problem, need, or change arises.

Question 56

reactive

Answer 56

taking action after a problem, need, or change arises

Question 57

public relations strategies

Answer 57

actions used to communicate a particular message to the public and influence their perception.

Question 58

crisis public relations

Answer 58

a business reactively communicating to various publics in response to an issue that can negatively affect its reputation

Question 59

crisis management

Answer 59

identifying potential risks that a business may encounter and determining how it will deal with them.

Question 60

crisis communication plan

Answer 60

a guide that describes the processes that a business will follow during an emergency situation and when handling negative publicity.

Question 61

green marketing

Answer 61

an advertising strategy that involves highlighting the environmental benefits of a good or service.

Question 62

greenwashing

Answer 62

falsely advertising products or processes as environmentally friendly to persuade customers to purchase a good or service.

Question 63

customer privacy

Answer 63

the administration and protection of sensitive, personal information that customers provide during their interactions and transactions with a business.