The full knowledge drill for 3.5. Cover the answer, say it out loud, then tap to check. Learn them off by heart for the fluency test.
Q1What is the purpose of marketing?
To identify and satisfy customer needs in order to sell products and make a profit.
Q2Why is identifying customer needs important?
So a business can provide a product customers will buy, increase sales, choose the right marketing mix, avoid costly mistakes and stay competitive.
Q3Give one benefit of satisfying customer needs.
Increased sales (also repeat custom, or staying competitive).
Q4What can happen if a business ignores customer needs?
It may make costly mistakes and lose sales to competitors.
Q5What is the marketing mix?
The combination of price, product, promotion and place (the four Ps).
Q6What is market segmentation?
Dividing a market into groups of customers with similar characteristics.
Q7Give four ways a market can be segmented.
By gender, age, location and income.
Q8Why do businesses segment the market?
To target customers more accurately and design a suitable marketing mix.
Q9What is a market segment?
A group of customers who share similar characteristics or needs.
Q10Give an example of segmenting by age.
Offering different products to teenagers and to older customers.
Q11What is market research?
The process of collecting information about customers, competitors and the market.
Q12Why do businesses carry out market research?
To identify opportunities, understand customers and competitors, and reduce risk.
Q13What is primary research?
New, first-hand data collected by the business for a specific purpose.
Q14Give two methods of primary research.
Questionnaires/surveys, interviews, or focus groups.
Q15What is secondary research?
Existing data already collected by someone else.
Q16Give two methods of secondary research.
Internet research and printed press (e.g. newspapers, reports).
Q17Difference between qualitative and quantitative research?
Qualitative is opinions/reasons (words); quantitative is numerical data (numbers).
Q18What is market size?
The total sales or value of a market.
Q19What is market share, and how is it calculated?
A business's portion of total market sales; (business sales ÷ total market sales) × 100.
Q20What is price skimming?
Setting a high price for a new product, then lowering it over time.
Q21What is penetration pricing?
Setting a low price to enter a market and attract customers, then raising it later.
Q22What is competitive pricing?
Setting prices in line with competitors.
Q23What is a loss leader?
Pricing a product very low (even below cost) to attract customers who then buy other products.
Q24What is cost-plus pricing?
Adding a mark-up (a percentage) to the cost of making the product.
Q25Give two factors that influence pricing decisions.
Costs, competition, the nature of the market, or the product life cycle.
Q26What is the basic relationship between price and demand?
As price rises, demand usually falls (and as price falls, demand usually rises).
Q27Give a reason a business might use price skimming.
To make high profits from a new, innovative product before competitors copy it.
Q28What is a unique selling point (USP)?
A feature that makes a product stand out from competitors.
Q29Why is a USP important?
It helps a product stand out in a competitive market and attract customers.
Q30What is brand image?
The way customers perceive a brand.
Q31Why is a strong brand image important?
It builds customer loyalty and can allow a business to charge higher prices.
Q32Name the stages of the product life cycle.
Research and development, introduction, growth, maturity, decline.
Q33What is an extension strategy?
A method used to extend a product's life and delay decline.
Q34Give two extension strategies.
Updating packaging, adding features, changing the target market, advertising, or price reductions.
Q35What is a product portfolio?
The range of products a business sells.
Q36What is the Boston Matrix?
A tool to analyse a product portfolio by market share and market growth.
Q37Name the four categories of the Boston Matrix.
Stars, cash cows, question marks and dogs.
Q38What is promotion?
Communicating with customers to inform and persuade them to buy.
Q39Give two methods of advertising.
Newspapers, magazines, television, internet, or billboards.
Q40Give two sales promotion methods.
2-for-1 offers, free gifts, samples, coupons, or competitions.
Q41Give two reasons a business promotes its products.
To inform/remind customers, increase sales, change the image, or persuade people to buy.
Q42Give two factors that influence the promotional mix.
Finance available, competitor actions, the nature of the product/market, or the target market.
Q43What is “place” in the marketing mix?
How a product reaches the customer — the channels of distribution.
Q44Give three channels of distribution.
Retailers, wholesalers and telesales.
Q45What is a retailer?
A business that sells products directly to consumers.
Q46What is a wholesaler?
A business that buys in bulk from producers and sells to retailers.
Q47What is e-commerce?
Buying and selling goods and services online.
Q48What is m-commerce?
Buying and selling using mobile devices such as smartphones.
Q49Why must the four Ps work together?
A weakness in one element can undermine the others, so they must be consistent.
Q50How might the marketing mix change over time?
As a product moves through its life cycle or the market changes, the business adjusts the four Ps.