Topic 3 - DJN



Topic 3.1 Marketing

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The Key Areas:

• Market Research

• Product Trial and Repeat Purchases

• Product Life Cycle

• Branding and Differentiation

• Boston Matrix

The two main types of research are: Primary Research and Secondary Research.

Primary Research

The benefits of Primary Research:

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Secondary Research

The benefits of Secondary Research:

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What good is gathering data if you can’t analyse it???

There are two different types of data you can collect they are:

1. Quantitative Research

2. Qualitative Research

Quantitative Research

Define Quantitative Research including examples.

|Benefits |Disadvantages |

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Qualitative Research

Define Qualitative Research including examples.

|Benefits |Disadvantages |

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Revision Questions

1. What is the meaning of marketing – define

2. Explain the purpose of businesses carrying out marketing research – name 4 reasons

3. Name 4 quantitative research methods used by businesses

4. Name 4 qualitative research methods used by businesses

5. Name 2-3 advantages and disadvantages of each type of quantitative and qualitative research method used.

6. What are the advantages and disadvantages of primary and secondary research in general?

Practice Exam Questions

Businesses collect a wide range of market research data.

Identify one method of collecting quantitative market research data. (1 mark)

Explain how quantitative data might help a business to improve its marketing mix. (3 marks)

Product Trial is

Methods of trialling a product are:

1.

2.

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5.

Repeat Purchases are

A method of a business ensuring that they receive repeat purchases is through their marketing mix. The marketing mix is:

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Revision Questions

1. Define product trial

2. Define repeat purchases

3. Name 8 methods used by businesses when setting up a product trial

4. What can a business do to its marketing mix to maintain repeat purchases

5. Name the issues a business may face when setting up product trials and repeat purchase

Practice Exam Questions

Amazon is a well known online retailer. It has grown by differentiating itself from its rivals and being highly competitive.

Amazon is an online retailer.

Which one of the following elements of the marketing mix does this represent?

Select one answer. (1 Mark)

A Price.

B Product.

C Promotion.

D Place.

Identify two methods Amazon might use to differentiate its service from its rivals. (2 marks)

Describe why developing a well known brand is important to the success of a Business such as Amazon. (3 marks)

All products go through the same life cycle- but it is important to remember that the sales life of some products is longer than others.

There are 5 stages to the product life cycle, they are:

1.

2.

3.

4.

5.

Draw the Product Life Cycle, labelling all parts correctly.

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Revision Questions

1. Define product life cycle

2. Explain the purpose of a product life cycle for a business

3. Explain the five phases of a product life cycle

a. What activities are the business carrying out at each stage

b. What is happening to sales at each stage

c. What is happening to profits at each stage

d. What is happening to the businesses cash flow position at each stage

4. Explain the meaning of an extension strategy

5. Give 2 real examples of businesses using product extension

The product life cycle below shows sales of a new chocolate bar over a period of time.

What is phase 3 called? (1 mark)

Identify two possible extension strategies a chocolate manufacturer might use. (2 marks)

Explain how one of the strategies you identified would extend the product life cycle of the new chocolate bar. (3 marks)

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The Boston Matrix is:

Complete the diagram below:

|Category |Why this means |

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|Dog | |

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|Star | |

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|Cash Cow | |

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|Problem Child | |

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Revision Questions

1. Define Boston Matrix

2. What is the meaning of a ‘product portfolio’

3. What is the use of the Boston Matrix, how do businesses use it

4. Define market share

5. Define market growth

6. Explain what each part represent according to: market growth and market share

a. Star

b. Dog

c. Cash cow

d. Problem child

Identify one element of the Boston Matrix. (1 Mark) ___________

Describe how the use of the Boston Matrix can benefit a business. (3 Marks)

What is a Brand?

How can branding have an impact on the Product Life Cycle? (*Hint-Extend and Stretch)

Products can be differentiated by:

1. Design, formulation & function

2. Name

3. Packaging

Advantages to Branding

Revision Questions

1. Define brand

2. Define product differentiation

3. Explain 5 benefits to a business for establishing a brand name

4. Explain what issues can arise with establishing or maintain a brand name

5. Name 6 ways a business can differentiate its product/service from its competitors

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Practice Exam Questions

Practice Exam Questions

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