schedule D

Question 1

market size definition

Answer 1

total sales volume of the market

Question 2

market share definition

Answer 2

the proportion of total market sales that a firm has

Question 3

market growth definition

Answer 3

the percentage increase in the size of the market by value or volume over a period of time

Question 4

internal influence on marketing objectives (CO)

Answer 4

Corporate Objectives
- a marketing objective should not conflict with a corporate objective

Question 5

internal influence on marketing objectives (F)

Answer 5

Finance
- the financial position of the business affects scope and scale of marketing objectives

Question 6

internal influence on marketing objectives (HR)

Answer 6

Human resources
- for services businesses in particular having a motivated, high quality workforce is a key factor in affecting marketing objectives

Question 7

internal influence on marketing objectives (OI)

Answer 7

Operational issues
- operations plays a key role ensuring the business can either compete on cost or quality which will influence the target market of the product

Question 8

internal influence on marketing objectives (OC)

Answer 8

organisational culture
- e.g. a marketing orientated culture is constantly looking for ways to meet customer needs.

Question 9

external influence on marketing objectives (EE)

Answer 9

Economic environment
- key factor is determining demand e.g. rate of economic growth will impact demand

Question 10

external influence on marketing objectives (CA)

Answer 10

competitors actions
- marketing objectives have to take account of likely competitor responses

Question 11

external influence on marketing objectives (MS)

Answer 11

Market size
- a market who’s growth slows is less likely to support an objective of significant revenue growth or new product development.

Question 12

external influence on marketing objectives (TC)

Answer 12

Technological change
- many markets are affected by rapid technological change, shortening product life cycle and creating great opportunities for innovation

Question 13

external influence on marketing objectives (S&PC)

Answer 13

social & political change
- changes to legislation may create or prevent marketing opportunities

Question 14

primary market research description

Answer 14

data collected first hand for a specific purpose
e.g. focus groups

Question 15

advantages of primary market research (3 points)

Answer 15

• directly focused to research objectives = fit for purpose
• tends to be up to date
• more detailed insights

Question 16

disadvantages of primary market research (2 points)

Answer 16

• time consuming and often costly
• risk of survey bias - research samples may not be representative of population

Question 17

secondary market research description

Answer 17

data that already exists and which has been collected for a different purpose
e.g. big data

Question 18

advantages of secondary market research (3 points)

Answer 18

• often free and easy to obtain
• good source of market insights
• quick to access and use

Question 19

disadvantages of secondary market research (3 points)

Answer 19

• can quickly become out of date
• not always tailored to specific research needs
• specialist reports often quite expensive

Question 20

quantitive data definition

Answer 20

the gathering of statistical data to inform the company about peoples behaviour but doesn’t identify the reasons

Question 21

qualitative data definition

Answer 21

the gathering of non statistical information that gives a company in depth insight into the reasons for human behaviour

Question 22

reasons for carrying out market research (6 points)

Answer 22

• identify potential customers
• understanding your existing customers
• set realistic targets
• develop effective strategies
• examine and solve business problems
• identify business opportunities

Question 23

risks for business of not carrying out market research (3 points)

Answer 23

• might miss changing taste
• inaccurate or inappropriate targets
• cannot solve problems due to ineffective data

Question 24

random sampling description

Answer 24

a sample is selected from an individual chosen by chance

Question 25

quota sampling

Answer 25

a population is segmented into groups. judgement is made selecting respondents that are representative of that subgroup.

Question 26

satisfied sampling

Answer 26

population separated into sub groups. respondents are randomly selected from those subgroups.

Question 27

advantages of sampling (3 points)

Answer 27

- data gathered allows us to make more informed decisions - sampling can give a competitive advantage - sampling allows us to access a broad range of data

Question 28

disadvantages of sampling (2 points)

Answer 28

- if sample size isn't sufficient then data will be inaccurate - sample has to be asking correct demographic to be relevant.

Question 29

extrapolation definition

Answer 29

a statistical technique that predicts future trends based on existing data

Question 30

extrapolation method

Answer 30

last year - first year = X X/years = Y Y + last year = answer

Question 31

confidence levels definition

Answer 31

the probability that the research findings are correct (expresses as a %)

Question 32

how are confidence intervals used in quality management (2 points)

Answer 32

- percentage reliability machines - chance that quality control samples will detect issues

Question 33

how are confidence intervals used in market research (2 points)

Answer 33

- statistical estimates for sales forecasting - reliability of data from customer surveys

Question 34

three steps of segmentation (3 points)

Answer 34

1. segmentation - potential customers are split into different groups 2. target - you chose which groups you are going to sell to 3. position yourself - apply your marketing mix

Question 35

demographic segmentation (4 points)

Answer 35

- age - gender - race - religion

Question 36

geographic segmentation

Answer 36

based on where people live

Question 37

income segmentation

Answer 37

based on their income

Question 38

behavioural segmentation

Answer 38

based on behavioural patterns rather than characteristics e.g. frequency of purchase, reason for purchase

Question 39

benefits of segmentation (3 points)

Answer 39

- increased brand loyalty - increased demand - creates personal relationship with customer

Question 40

drawbacks of segmentation (2 points)

Answer 40

- its expensive (marketing, R&D, raw materials) - targeting small markets can lead to less profitable goods

Question 41

advantages of mass marketing (4 points)

Answer 41

- target a wider market meaning more sales - benefit from economies of scales - no need to carry out segmentation (cheaper) - raises more brand awareness

Question 42

disadvantages of mass marketing (5 points)

Answer 42

- not meeting the customers needs - less added value with products - large market = more competition - increased pressure to decrease prices - initially expensive to purchase machinery

Question 43

advantages of niche marketing (3 points)

Answer 43

- meets customers needs well - can survive in large market by targeting a small segment - added value and increased brand loyalty mean they can charge premiums

Question 44

disadvantages of niche marketing (3 points)

Answer 44

- tough to grow - typically fashion trends meaning they are high risk - dont benefit from the economies of scale

Question 45

factors affecting positioning (4 points)

Answer 45

- price - products - market mapping - image

Question 46

PED definition

Answer 46

the correlation between price and the quantity demanded

Question 47

PED of a price elastic product

Answer 47

(less than) -1>

Question 48

PED of a price inelastic product

Answer 48

between 0 and -0.9

Question 49

the 7p's of the marketing mix

Answer 49

- Product - price - place - promotion - people - process - physical environment

Question 50

consumer product: convenience item (2 points)

Answer 50

- products where the ease with which a consumer can get the product is a key priority - business can charge premium for the convenience

Question 51

consumer product: shopping goods (2 points)

Answer 51

- products where the consumer compares products before making a decision - brought less frequently

Question 52

consumer products: speciality (2 points)

Answer 52

- products that a customer will spend time thinking about and often research before buying - infrequent

Question 53

industrial products: materials and parts (3 points)

Answer 53

- raw material components - mostly sold to other industrial users - price and service are key issues

Question 54

industrial products: capital items

Answer 54

- used in production or operations e.g. IT systems

Question 55

product lifecycle: development (3 points)

Answer 55

- investment in R&D - product testing - negative cash flow

Question 56

product lifecycle: introduction (3 points)

Answer 56

- when product is launched - sales may start slow - may require investment into marketing

Question 57

product lifecycle: growth (3 points)

Answer 57

- sales begin to increase - product awareness is increasing - positive cash flow

Question 58

product lifecycle: maturing (3 points)

Answer 58

- rate of growth is slowing - sales can still be high - could be due to increase in competition

Question 59

product lifecycle: decline (2 points)

Answer 59

- sales are falling - perhaps better substitutes

Question 60

extension strategy

Answer 60

this is when a product is adapted and given a new lease of life used to increase sales in a market that has become saturated

Question 61

drawback of extension strategy

Answer 61

opportunity cost - do you spend the money on the extension or on developing a new product

Question 62

Boston Matrix: Dog (3 points)

Answer 62

low market share low market growth cut off product

Question 63

Boston Matrix: cash cow (3 points)

Answer 63

high market share low market growth milk as much money as possible

Question 64

Boston Matrix: star (3 points)

Answer 64

high market share high market growth turn into a cash cow

Question 65

Boston Matrix: question mark (3 points)

Answer 65

relatively high market share low/declining growth turn (back) into a star

Question 66

YED of a normal good

Answer 66

0-1

Question 67

YED of a luxury good

Answer 67

>1

Question 68

YED of an inferior good

Answer 68

0>