Unit 2 Key terms, Marketing

Question 1

Marketing

Answer 1

Is concerned with finding the needs of customers and then meeting those needs

Question 2

Market Research

Answer 2

About how the business collects information on whether or not their products or services will be bought

Question 3

Primary research (field research)

Answer 3

Any type of research that is new/information being collected for the first time e.g surveys/questionnaires, interviews, focus groups, trials

Question 4

Focus groups

Answer 4

A group of consumers who are selected to represent the target market brought together to discuss their feelings on a product /market

Question 5

Trials

Answer 5

A product or service is sold for a short amount of time as a test to see whether or not consumers like the product

Question 6

Secondary market research (desk research)

Answer 6

Research that another organisation has already completed / already exists e.g websites, census data

Question 7

Census data

Answer 7

Data collected by the government every ten years, questioning the entire population on their income, occupation etc.

Question 8

Internal data

Answer 8

Refers to past sale figures, profits and comments from customers. This can be used for future decision making

Question 9

Qualitative data

Answer 9

More detailed information e.g interview

Question 10

Quantitative data

Answer 10

Facts and figures

Question 11

Market segmentation

Answer 11

splitting the market for a product into different parts or segments

Question 12

Marketing mix

Answer 12

Made up of different parts, 4ps
price
product
place
promotion

Question 13

Cost plus pricing

Answer 13

Adds a percentage to the cost of making a product to give the selling price

Question 14

Competitor pricing

Answer 14

When a price is based on prices charged by a competitor business for a similar or identical product

Question 15

Penetration pricing

Answer 15

When a business is new to the market - a price is set lower than competitor businesses. This is a short term strategy to help break customer loyalties from trusted brands

Question 16

Price skimming

Answer 16

The business has a higher price than competitors because it has a better product, for which customers are willing to pay more for.

Question 17

Promotional pricing

Answer 17

Prices are reduced for a short period of time, often to sell off old stock

Question 18

Promotion

Answer 18

How a business informs its customers about a product of service and then persuades them to buy it

Question 19

Loss leader

Answer 19

a product priced below cost-price in order to attract consumers into a shop or online store. The purpose of making a product a loss leader is to encourage customers to make further purchases of profitable goods while they are in the shop

Question 20

Invention

Answer 20

introduction of a totally new idea

Question 21

Innovation

Answer 21

Improvement of an original idea

Question 22

Design

Answer 22

Related to style, technology

Question 23

Product life cycle

Answer 23

The stages a product goes through from when it was first thought of until it finally is removed from the market

Question 24

Introduction

Answer 24

researching, developing and then launching the product

Question 25

Growth

Answer 25

When sales are increasing at their fastest rate

Question 26

Maturity

Answer 26

Sales are near their highest, but the rate of growth is slowing down

Question 27

Decline

Answer 27

Final stage of the cycle, when sales begin to fall

Question 28

Extension strategies

Answer 28

Extending the life of a product before it goes into decline

Question 29

Place

Answer 29

Where products and services are sold AND how the business gets products and services to the consumer

Question 30

Distribution channel

Answer 30

All the organisations through which a product must pass between of production and purchase by the consumer

Question 31

Physical distribution channel 1

Answer 31

Producer -> consumer

Question 32

Physical distribution channel 2

Answer 32

Producer -> Retailer -> Consumer

Question 33

Physical distribution channel 3

Answer 33

Producer -> Wholesaler -> Retailer -> Consumer

Question 34

Whole saler

Answer 34

a large storage centre able to take in deliveries direct from producers, The role is to BREAK BULK - buying in large quantities from a producer and then selling smaller amounts to a retailer

Question 35

Regional distribution centre (RDC)

Answer 35

Owned by the retailer (e.g next) and are used to store products they will later sell than buying from wholesalers

Question 36

physical distribution

Answer 36

movement of goods that we ca see and touch e.g road transportq

Question 37

Digital distribution

Answer 37

Distribution of goods digitally by downloading from a website or app

Question 38

Market data

Answer 38

Information that will help a business make marketing decisions