SQA Higher Business Management Management of Marketing overview quiz quiz

It researches and responds to customer needs before producing

It makes a product first and then tries to find customers for it

It always sets the lowest price of any firm in the market

It sells only to other businesses rather than to consumers

Test marketing a product in one region before a full launch

Market segmentation, splitting the market into groups to target

Desk research using existing published statistics

Extension strategy used to prolong a product's life

Reading government population statistics that already exist

Looking at the firm's own past sales records and reports

Carrying out a survey of customers about a new product

Studying a published market report bought from an agency

It is very expensive and slow to carry out from scratch

It gathers brand-new data that is highly specific to the firm

It can only ever be gathered by interviewing customers directly

The data may be out of date or collected for a different purpose

Sales reach their peak and level off, with intense competition

Sales are zero because the product is still being developed

Sales rise very quickly as the product first catches on

Sales fall sharply as the product goes out of fashion

Star, the firm's future that needs heavy investment

Cash cow, generating steady cash to fund other products

Question mark, an uncertain product needing investment

Dog, usually withdrawn from the product portfolio

Penetration pricing, to win market share quickly

A loss leader, sold below cost to attract customers

Price skimming, a high launch price for an innovative product

Psychological pricing, just below a round figure

Premium pricing, signalling that the milk is high quality

Competitive pricing, simply matching what rivals charge

Cost-plus pricing, adding a margin to the cost of the milk

A loss leader, sold below cost to attract customers into the store

The wholesaler breaks bulk and reaches many small shops

The manufacturer sells directly to the final consumer online

There are no middlemen, so the final price is at its lowest

The manufacturer keeps full control of how the product is sold

It hands a large share of the profit to wholesalers and retailers

It cuts out middlemen, so the firm keeps more profit and control

It limits the firm to selling only in its own local area

It removes the need to arrange any delivery or handle returns

An out-of-the-pipeline promotion aimed at the final consumer

Public relations aimed at building the firm's overall image

An into-the-pipeline promotion aimed at the retailer to stock the product

Personal selling by sales staff dealing directly with customers

A point-of-sale display unit supplied free to a shop

Training given by the manufacturer to a retailer's staff

A sale-or-return deal offered to a wholesaler

A money-off coupon given to shoppers at the checkout

Physical evidence, the visible cues such as decor and branding

Price, the amount the customer is charged for the product

Promotion, how the firm communicates with its customers

Place, how the product is distributed to the customer

Because services are cheaper to produce than physical goods

Because a service is intangible, so customers judge it by these cues

Because services are always sold only through wholesalers

Because a service never involves any staff dealing with customers

It can only ever reach a very small, local audience

It is far more expensive than advertising on television

Negative comments are public and can spread quickly, harming reputation

It makes it impossible to gather any data about customers