How can businesses respond to changing spending patterns and increased competition

• maintain good customer relationships

• improve existing products

• increase prices

• bring out new products

The advantages of selling to a mass market are:

• Total sales in these markets are very high

• Total sales in these markets are very low

• Opportunities for growth of the business due to large potential sales

• high levels of competition

Ways of segmenting a market include:

Name 3 methods of primary research

Answer explanation

Primary research is the collection & collation of original data via direct contact with potential or existing customers.

- questionnaire

- survey

- interview

- focus group

what are the 4 Ps of the marketing mix

• Product

  Price

  Package

  Promotion

• Product

  Price

  Place

  Personalization

• Product

  Price

  Place

  Promotion

• Product

  Prototype

  Price

  Promotion

What is brand loyalty?

• consumers keep buying the same brand again & again instead of choosing competitor's brands

• An image or identity given to a product which gives it a personality of its own.

• consumers buy different brands to try and find the brand that suits them best

• The unique name of a product that distinguishes it from other brands.

Name the stages of the product life cycle

Answer explanation

1. Development

2. Introduction

3. Growth

4. Maturity

5. Saturation

6. Decline

The total cost of making 1000 ice-creams is $2000. The business wants to add 30% profit on each ice-cream sale. Using cost-plus pricing, what is the selling price of each ice-cream?

• $26

• $2.60

• $0.60

• $2.30

Answer explanation

($2000/1000) + 30% markup = selling price

to calculate the 30%:

2000/1000 x 0.3 = 0.6

$0.6 profit on each unit

or

check by:

2000/1000 x 1.3 = $2.60

Different types of advertising. Advertising can be informative or .....

What is the role of marketing?

Answer explanation

The role of marketing is to identify and satisfy customer needs, maintaining customer loyalty and building customer relationships