What is the relationship between marketing Marketing decisions have implications for other

decisions and other business functions? business functions and the business as a whole.

What is the purpose of market research in a Market research is carried out first before producing
market-oriented business? a product to reduce the risk of failure and allow the
business to adapt better to market changes.

What is the focus of a product-oriented business? A product-oriented business is more concerned

about innovation and product development.

What are the opportunities for businesses that lead There are opportunities for businesses that lead
with high-quality, innovative products? with high-quality, innovative products in the market.

How can market size be measured? Market size can be measured by volume or value.

What does measuring market size by volume Measuring market size by volume involves
entail? measuring the units sold.

What does measuring market size by value entail? Measuring market size by value involves measuring
the total amount spent by customers buying the
product.

What are the two ways in which market size can be By volume or value.
measured?

What does measuring market size by volume The units sold.

measure?

What does measuring market size by value The total amount spent by customers buying the
measure? product.

What is the key question to consider when deciding "Is it big enough!?"
whether to enter a market?

What does market share refer to? The portion of the market that a company holds.

What does it mean if a company is growing in a The company's market share is increasing.
market?

What are the components of marketing planning? Objectives, strategies, action plans, and marketing
budget.
What is the purpose of setting objectives in a To provide specific goals for the company to
marketing plan? achieve.

What is an example of a marketing strategy? Becoming more economic than competitors.

What is an example of an action plan in marketing? Promotional pricing.

What is the role of marketing planning? To improve the chances of success and identify
potential problems.

What are the limitations of marketing planning? Plans may become outdated if not revised, and the
process requires time and money.

What is a consumer profile? Characteristics of consumers of a particular

product, such as age, gender, and income levels.

Why is knowing consumer profiles important for It allows them to segment their market effectively.
businesses?

What is market segmentation? Identifying specific groups of consumers with similar

characteristics or needs.

What is market segmentation? Identifying specific sub-groups within the market to

aim their products at.

What is demographic segmentation? Age, gender, religion, and family characteristics.

What is geographic segmentation? Based on climatic conditions.

What is psychographic segmentation? Based on people's lifestyle choices, values, and

attitudes.

What is targeting? Aiming products at a particular segment.

What is niche marketing? Targeting a small section of the whole market.

What is mass marketing? Targeting the entire market.

What is product positioning? The process of positioning products favorably on a

position/perception map.
What are the steps involved in product positioning? 1. Identify important factors for customers. 2.
Position product (and competitors) accordingly.

What are important factors for customers? Identifying competitors or threats in the market and
identifying potential gaps or opportunities in the
market.

How do you position a product (and competitors) By establishing the Unique Selling Point/Proposition
accordingly? (USP) and determining which feature of the product
makes it different from competitors.

What elements of the marketing mix can be used to Any of the elements of the marketing mix: product,
establish the USP? price, promotion, place.

What are the 4 P's of the marketing mix? Product, Price, Promotion, Place.

What happens during the Introduction stage of the The company will have spent a lot of time and
product life cycle? money in development, profit and cash flow are
likely to be low or negative, and there is a high
investment in product development and marketing.

What happens during the Growth stage of the Sales grow exponentially if the product is
product life cycle? well-received, profit increases substantially, and
cash flow also improves.

What happens during the Maturity stage of the There is a high level of sales, although they do not
product life cycle? grow significantly, the market eventually becomes
saturated, there is a high level of competition, and
profit and cash flow are at their highest levels due to
high sales and lower costs.

What are the factors that contribute to high profit High sales and lower costs.
and cash flow levels?

What are the possible strategies during the decline Rebranding the product and market development.
stage of a product's life cycle?

What is the Boston Consulting Group matrix based Market growth rate and market share.
on?

What is the objective of brand awareness? To make customers aware of the product's
existence.
What is the objective of brand development? To increase the value of the brand through different
promotional strategies.

What is the objective of brand loyalty? To encourage repeat buying by customers.

What is the objective of packaging? To provide protection during transportation, from

direct light, and high temperatures.

What are the factors of packaging? Protection, Information, Attractive, Convenience.

What is cost-based pricing? Adding a mark-up to the cost of production.

What is market-based pricing? Setting prices based on market conditions.

What is penetration pricing? Setting a low initial price to enter a market.

What is price skimming? Setting high prices to enter a market.

What is psychological pricing? A strategy that aims to achieve a particular

perception of the product amongst consumers.

What is a loss leader? Setting a low price for a product to attract

customers.

What is an example of using high prices to portray a Using high prices to portray a high-quality image.
high-quality image?

What is an example of avoiding the use of round Avoiding the use of round numbers to appear
numbers to appear cheaper? cheaper.

What is the definition of a loss leader? Setting a low price on some products to attract
customers into your shop.

What is an example of a loss leader? Setting a low price for bread and milk.

What is the definition of marketing? The process of promoting and selling products or
services.

What is price discrimination? Setting different prices to different market segments

based on elasticity of demand.
What is an example of price discrimination? Offering standard and VIP pricing.

What is price leadership? When the dominant business with the highest
market share sets the price in the market.

What is predatory pricing? Engaging in a "price war" for short-term gain,

potentially leading to no competition in the long run.