Business Unit 5 Test Cram

What is marketing?

Connecting products to customers and bringing them to market.

What are the 3 roles of marketing?

Connect customers, sell products, manage brands.

What are the 4 P’s of marketing?

Product, Price, Place, Promotion.

What are the 2 C’s of marketing?

Consumer and Competition.

What is market research?

Collecting and analyzing consumer information.

Why do businesses use market research?

To reduce risk and make better marketing decisions.

What are 2 benefits of market research?

Helps plan the 4 P’s and reduces surprises.

What is primary research?

Original research collected firsthand.

Give examples of primary research.

Surveys, interviews, data mining, field trials.

What is secondary research?

Research using existing information.

Give examples of secondary research.

Articles, books, databases, online sources.

What is quantitative data?

Numbers and facts.

What is qualitative data?

Opinions, thoughts, and beliefs.

What is a closed-ended question?

A question with limited answer choices.

What is an open-ended question?

A question with a detailed response.

Closed-ended question example?

Would you buy this product? Yes or no.

Open-ended question example?

Why would you buy this product?

What is the product life cycle?

A product’s time from launch to removal.

What are the product life cycle stages?

Introduction, Growth, Maturity, Decline, Decision Point.

What happens in introduction?

Product launches and consumers are unaware.

Advertising objective in introduction?

Inform consumers.

Introduction stage example?

Self-driving cars.

What happens in growth?

Popularity increases and competitors enter.

Advertising objective in growth?

Persuade and differentiate.

Growth stage example?

Electric vehicles.

What happens in maturity?

Growth is flat and brand recognition is highest.

Advertising objective in maturity?

Remind consumers.

Maturity stage example?

Smartphones.

What happens in decline?

Sales decrease.

What can businesses do during decline?

Change price, advertise, repackage, or reformulate.

Decline stage example?

Personal computers.

What happens at the decision point?

Reintroduce or discontinue the product.

Discontinued product example?

CD/DVD players.

What are 3 non-traditional life cycles?

Fads, niches, seasonal products.

What is a fad?

Extremely popular for a short time.

Fad example?

Pokémon Go.

What is a niche?

A small market with few competitors.

Niche example?

Vegan face wash.

What is a seasonal product?

Popular during a specific season.

Seasonal example?

Christmas trees.

What is Product in the 4 P’s?

The good or service being offered.

What should a product do?

Satisfy needs and beat competitors.

What is product utility?

Features that make a product useful.

What are the 3 quality levels?

Premium, competitive, value.

What is Price in the 4 P’s?

How much customers pay.

What affects price?

Cost, demand, target market, competition, brand image.

What is cost-plus pricing?

Cost plus markup equals selling price.

What is loss leader pricing?

Selling low to attract customers.

What is penetration pricing?

Low starting price to gain market share.

What is skimming pricing?

High starting price with little competition.

What is follow-the-competition pricing?

Matching or slightly beating competitor prices.

What is psychological pricing?

Pricing that makes items seem cheaper.

Psychological pricing example?

$2.99 or $99.

What is Place in the 4 P’s?

Where/how customers buy the product.

What is a direct channel?

Producer sells directly to customers.

Direct channel example?

Restaurant, company store, e-commerce website.

Direct channel advantage?

More control over pricing and brand image.

Direct channel disadvantage?

Can be costly and harder to scale.

What is an indirect channel?

Product goes through intermediaries.

What is a retailer?

A business selling directly to consumers.

What is a wholesaler?

A business selling mainly to retailers.

Indirect channel advantage?

Reaches more people faster.

Indirect channel disadvantage?

Less control and less customer contact.

What is Promotion in the 4 P’s?

Communicating product messages to consumers.

What are 3 advertising media?

Print, broadcast, social media.

How choose an advertising medium?

Use the medium your target market uses.

What is AIDA?

Attention, Interest, Desire, Action.

What is Attention in AIDA?

Grab the consumer’s attention.

What is Interest in AIDA?

Show features and benefits.

What is Desire in AIDA?

Make customers want the product.

What is Action in AIDA?

Tell customers what to do next.

What are the 3 advertising objectives?

Inform, persuade, remind.

What is sales promotion?

Short-term offers like discounts or samples.

What is personal selling?

Face-to-face selling to customers.

What is public relations?

Managing public image and reputation.

What is branding?

Creating a distinct identity for a product/company.

Why is branding important?

It makes products memorable and different.

What is top-of-mind awareness?

First brand thought of in a category.

What is a proprietary eponym?

A brand name used for a whole product category.

What is a target market?

Consumers most likely to buy a product.

Why identify a detailed target market?

To make better marketing decisions.

What is a consumer profile?

A description of the ideal customer.

What are demographics?

Age, gender, income, ethnicity, generation.

What are geographics?

Location, climate, urban/suburban/rural area.

What are psychographics?

Values, lifestyle, hobbies, likes/dislikes.

What is behaviour in target marketing?

Brand loyalty, usage rate, desired features.

What is direct competition?

Similar products targeting the same market.

Direct competition example?

Coke vs Pepsi.

What is indirect competition?

Different products satisfying the same need.

Indirect competition example?

Pizza Hut vs KFC.

What is competitive advantage?

An advantage over competitors.

What is sustainable competitive advantage?

Long-term advantage competitors struggle to copy.

Sustainable advantage examples?

Patents, loyalty, niche market, lower costs.

What is market share?

Percentage of sales in a product category.

What should a strong marketing mix do?

Make all 4 P’s work together.