What is price taking?

Using exactly the same price as competitors.

What are some of the legal factors?

Employment laws, discrimination laws, consumer safety, health & safety

What are some of the social issues?

Changing lifestyles, attitudes and spending habits, decreasing birth rate.

What are some of the technological issues?

Level of innovation, cybersecurity, internet availability/speed.

What is the correct definition for capital goods?

They are machines and tools used by industry during production.

What are some of the economic issues?

Unemployment, tax increases, interest rates, inflation rates.

The stages of the product life cycle are...

Introduction, Growth, Maturity & Decline.

What factors affect a businesses location?

transport, communications, access to suppliers, competitors & customers.

What is a market-orientated business?

Businesses identify the needs of the customer and then make the product.

What are the disadvantages of maintaining a broad portfolio?

Costs money, space need for storage, some products may not be profitable.

What is the correct meaning for Market Share?

It's the % of the toal sales of a product accounted for by one company.

What are some of the environmental factors?

Laws on pollution, 'green' issues, weather, climate change, sustainability.

How does marketing help businesses?

Increases market share, brand recognition, customer loyalty, boost sales...

What are some of the political issues?

tax, brexit, government policy, trade policies.

Asking a high price at the launch of a new product.

What are the benefits of maintaining a broad portfolio?

Reduces risk, increases revenue, all products have the same USP.

What is competitive pricing?

Using a similar price to competitors.

What is a product-orientated business?

These businesses focus on their areas of expertise to produce new items.

What is penetration pricing?

Asking a low price at the launch of the product to interest people.

What is the correct definition for consumer goods?

They are items bought in shops or online by customers.

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Exam Prep for Unit 9

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Questions 36

Answers

1
What is price taking?
Asking a high price at the launch of the product.
Asking a low price at the launch of the product to interest people.
Using a similar price to competitors.
Using exactly the same price as competitors.
2
Quantitative data are data represented numerically, including anything that can be counted, measured, etc.
False
True
3
The 4P's stand for: Product, Price, Place & Promotion.
True
False
4
Primary data is data that already exists and is also known as desk research.
True
False
5
What are some of the legal factors?
Employment laws, discrimination laws, consumer safety, health & safety
Level of innovation, cybersecurity, internet availability/speed.
tax, brexit, government policy, trade policies.
Changing lifestyles, attitudes and spending habits, decreasing birth rate.
6
What are some of the social issues?
Changing lifestyles, attitudes and spending habits, decreasing birth rate.
Unemployment, tax increases, interest rates, inflation rates.
employment laws, discrimination laws, health and safety.
tax, brexit, government policy, trade policies.
7
What are some of the technological issues?
tax, brexit, government policy, trade policies.
Level of innovation, cybersecurity, internet availability/speed.
employment laws, discrimination laws, health and safety.
Changing lifestyles, attitudes and spending habits, decreasing birth rate.
8
Ebusiness means the business buys/sells goods over the internet.
False
True
9
A distribution channel is the method used to get the product from consumer to the producer.
False
True
10
Demand normally increases when prices fall. It decreases when prices rise.
False
True
11
Guerrilla advertising - These are unconventional tactics used to promote a brand/idea such as graffiti.
True
False
12
Promotional channels include: personal selling, emarketing, direct marketing, advertising and public relations.
True
False
13
What is the correct definition for capital goods?
They are items bought in shops or online by customers.
It is a small market that aims to meet specific user needs.
They are machines and tools used by industry during production.
It is the largest market possible of a product.
14
What are some of the economic issues?
tax, brexit, government policy, trade policies.
employment laws, discrimination laws, health and safety.
Unemployment, tax increases, interest rates, inflation rates.
lifestyle attitudes, spending habits, decreasing birth rate.
15
The stages of the product life cycle are...
Growth, Innovation, Maturity and Decline.
Interest, Market, Profit and Decline.
Innovation, Maturity, Growth and Decline.
Introduction, Growth, Maturity & Decline.
16
Benchmarking means checking how the business is performing and comparing with other businesses.
True
False
17
Qualitative data are data representing information and concepts that are not represented by numbers.
True
False
18
Below the line includes all other types of promotion such as sales promotions, email newsletters and personal selling.
False
True
19
What factors affect a businesses location?
indirect and direct distribution channel.
price of product, costs of travel, costs of production.
transport, communications, access to suppliers, competitors & customers.
percentage of market share, advertising, location.
20
What is a market-orientated business?
Businesses identify the needs of the customer and then make the product.
They produce the same product.
Businesses focus on their areas of expertise to produce new items.
These type of businesses focus on making money.
21
Situational analysis is also known as PESTLE and SWOT analysis.
False
True
22
What are the disadvantages of maintaining a broad portfolio?
Reduces risk, increases revenue, all products have the same USP.
Costs money, space need for storage, some products may not be profitable.
Increases risk, reduces revenue, products are profitable.
Lots of profit can be made, shares are increased, stock is exchanged.
23
What is the correct meaning for Market Share?
It is the profit they lose.
It's the % of the toal sales of a product accounted for by one company.
It's the % of businesses they own.
It is shares in the market owned by a business.
24
What are some of the environmental factors?
Laws on pollution, 'green' issues, weather, climate change, sustainability.
Changing lifestyles, attitudes and spending habits, decreasing birth rate.
tax, brexit, government policy, trade policies.
Level of innovation, cybersecurity, internet availability/speed.
25
How does marketing help businesses?
Allows stakeholders to buy shares in the market.
Helps customers calculate how much they need to spend for the month.
Involves understanding customers needs and wants.
Increases market share, brand recognition, customer loyalty, boost sales...
26
What are some of the political issues?
employment laws, discrimination laws, health and safety.
tax, brexit, government policy, trade policies.
inflation rate, economic growth, unemployment, tax increases.
lifestyle attitudes, spending habits, decreasing birth rate.
27
Secondary data is data that is original, sources include: interviews, questionnaires, analysing sales records, etc.
False
True
28
What is Skimming?
Asking a low price at the launch of the product to interest people.
Asking a high price for a luxury product.
Asking a high price at the launch of a new product.
Using a similar price to competitors.
29
What are the benefits of maintaining a broad portfolio?
Increases risk, reduces revenue, products are profitable.
Able to withdraw products that can be sold at cheaper prices.
Reduces risk, increases revenue, all products have the same USP.
Lots of profit can be made, shares are increased, stock is exchanged.
30
Above the line promotions are paid-for promotions such as TV, radio, cinema and etc.
True
False
31
What is competitive pricing?
Asking a low price at the launch of the product to interest people.
Using a similar price to competitors.
Using exactly the same price as competitors.
Asking a high price at the launch of the product.
32
What is a product-orientated business?
Businesses that focus on pricing strategies.
A business that uses different business models.
These businesses focus on their areas of expertise to produce new items.
A business that focuses on identifying the needs of their consumers.
33
What is penetration pricing?
Asking a high price at the launch of a new product.
Asking a high price for a luxury product.
Asking a low price at the launch of the product to interest people.
Using a similar price to competitors.
34
Viral Marketing - spreading information for free on platforms such as Instagram and Facebook.
True
False
35
Ecommerce means that many of the business' operations are linked by technology.
False
True
36
What is the correct definition for consumer goods?
They are items bought in shops or online by customers.
It is concerned with products and services.
They are goods that are consumed by the consumer.
They are machines and tools used by industry during production.

Exam Prep for Unit 9 Flashcards | StudBud