4.1-4.4, IB Business Management

Which term describes the total sales of all the producers in a market?

• Market size

• Market power

• Sales Efficiency

• Concentration Ratio

What is Company A’s market share if its sales revenue amount to $100 million in an industry with annual sales of $500 million?

• 5%

• 20%

• 50%

• 80$

Which visual tool reveals customer perceptions of a product or a brand in relation to others in the market?

• Ansoff Matrix

• Product Life Cycle

• BCG Matrix

• Product Position Map

What kind of segmentation is used by a firm that offers a wide range of products such as holidays and insurance aimed at customers aged 60 and above?

• Psychographic

• Demographic

• Lifestyle

• Geographic

Potters Pots has a 26% share of the garden pots market in a local city. The market is worth $15,000,000 per year. What is the firm’s annual sales revenue?

• $17,250,000

• $1,500,000

• $3,900,000

• $11,100,000

Which term describes a distinct group of customers with similar characteristics and similar needs or wants?

• Consumer

• Market Segment

• Target Market

• Focus Group

The data in the table shows the percentage of customers who buy a decaffeinated drink from a café at different times of the day. Which method of data presentation would not be appropriate for this information?

• Pictogram

• Bar graph

• Pie Chart

• Histogram

Answer explanation

Although the data shows percentages, a pie chart only works if the total of all the data equals 100%. In this example, each time slot could be a maximum of 100% and the research is comparing shopping patterns through the day.

Which would be the most appropriate size of a typical focus group?

• 1-3

• 4-7

• 15-20

• 100

Answer explanation

Although there is no exact answer, four to seven people is generally considered to be a reasonable size for a focus group. It is large enough to get a range of opinions, but not too big that people are unable to be heard. It becomes more expensive to run focus groups when more people are involved

Which of the following is a characteristic of qualitative research?

• The researcher is not a part of the process

• Key questions focus on 'How many?'

• It is objective

• Key questions focus on 'Why?'

Answer explanation

Qualitative research focuses on questions that answer 'why' consumers may or may not buy a product or service. Qualitative research is also subjective and the researcher is part of the process. On the other hand, quantitative research is objective, the researcher is not a part of the process and key research questions focus on numerical data of 'how many'.

Marketing Mix: Product (preparation for next week) We will learn about the Product Life Cycle (PLC) - How many stages are in the PLC?

• 3

• 5

• 7

• 12