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WorksheetsMr Frayne RO67 Revision
Total questions: 100
Worksheet time: 1hrs 20mins
Which of the following is an example of primary research?
Books
Internet
Questionnaires
Journals
Which of these would be an example of primary market research that a start-up would use?
Newspaper report on the target market
Focus group talking about the product idea
A YouTube search for market reports
A government report on the target market
A business can understand the needs of its customers by...
conducting market research
making the best possible product
setting a lower price than competitors
having special offers such as buy one get one free
Secondary Research is...
Data that already exists that has been collected for a different purpose
Data collected first-hand for a specific research purpose
Research carried out by customers
Research carried out by stakeholders
Costs that must be paid regardless of how much of a good or service is produced. They do not change in the short term, regardless of output are called
Variable costs
Fixed costs
Total costs
The costs
Fixed Cost + Variable Cost =
Breakeven point
Total costs
Fixed costs
Variable costs
A negative difference between the revenues taken in by a business and the costs of operating a business (when a business spends more than it makes) :(
Profit
Breakeven
Loss
Closed
Costs that change based on the amount of goods and services produced.
Total costs
Fixed costs
Variable costs
Costs
A positive difference between the revenues taken in by a business and the costs of operating a business (when a business makes more than it spends). :D
Loss
Profit
Breakeven
Sales
Rent, administrative costs, insurance, employee salary are examples of ...
Variable costs
Fixed costs
Costs
Prices
Raw materials, packaging, wages/labour costs are examples of
Total costs
Fixed costs
Variable costs
Benefits
What is Revenue
Income from selling products or services
The money being paid out for bills
The money kept by an entrepreneur after costs are paid
The selling price of each of the items
Calculate the revenue if a business sells 20,000 units at £2 each
£4000
£40,000
$40,000
£400,000
Calculate the revenue if a business sells 80,000 units at $2.50 each
$200,000
£200,000
£20,000
$20,000
Business A has £5000 fixed costs per month. The variable costs per item they make and sell is £3. What is the businesses total costs if they make and sell 10,000 units.
£5003
£30,000
£35,000
£25,000
Business B has £1000 fixed costs per month. The variable costs per item they make and sell is £0.50. What is the businesses total costs if they make and sell 6000 units.
£4000
£3000
£1000.50
£2000
Which formula calculates profit.
Revenue - fixed costs = profit
Revenue - variable costs = profit
Revenue - total costs = profit
Revenue - profit = variable costs
Calculate profit from the following figures
Revenue: £40,000
Total cost: £6500
£33,500
£46,500
£30,500
£33,000
Calculate profit from the following figures
Revenue: £100,000
Fixed cost: £10,000
variable cost: £20,000
Total cost: £30,000
£130,000
£40,000
£80,000
£70,000
This is the term given to how many products/services a business produces.
Output
Cost
Fixed Cost
Variable cost
The things a business has to pay for in order to start-up and operate on a daily basis.
Output
Costs
Profit
Revenue
Advertising is...
output
fixed cost
variable cost
Insurance is...
fixed cost
variable cost
Salaries are...
fixed cost
variable cost
Loan repayment is...
fixed cost
variable cost
Packaging is...
fixed cost
variable cost
Wages are...
fixed cost
variable cost
Utilities are...
fixed cost
variable cost
All the fixed costs added together with all the variable costs.
output
fixed costs
variable costs
total costs
Revenue is...
Sales revenue – total costs
Selling price x number of units sold
Fixed costs + variable costs
cost that is independent of output
3. You want to know why consumer prefer the old packaging to the recently new launched packaging.
Qualitative
Quantitative
9. You want to define optimum price that consumer will buy for a new laptop.
Quantitative
Qualitative
Data that describes a group of people by age, marital status, gender, etc.
Psychographic data
Demographics
Geographic data
Which of these are ways to collect primary data? Check all that apply.
Census information
Government publications
Surveys
Interviews
Which of these types of research/data produces results in numbers, percents, etc.?
Qualitative
Quantitative
Which of these types of research/data shows consumers' attitudes and beliefs about a product, service, etc.?
Quantitative
Qualitative
A discount supermarket, such as Aldi, is most likely to place an emphasis upon which of the following elements of the marketing mix?
Product
Price
Place
Promotion
The manufacturer of an upmarket designer fragrance is most likely to focus on:
The product rather than the price
Price rather than the product
The product rather than promotion
Promotion rather than the product
The marketing Mix has_________ elements.
3
2
4
A ...................... is a special saying made from a few words that helps identify the company or brand.
logo
coupon
banner
slogan
On a break even chart, which line is horizontol?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
On a break even chart, which line starts at zero?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
Break Even is measured in
Output
£
What is the margin of safety?
The difference between your chosen output and the break even point
The difference between sales and output
The difference between profit and loss
The difference between Total Revenue and Total Profit
On this chart at which point does this business break even?
190
200
$2,000
$1,000
Describe how 'discounts' work as a sales promotion technique
To encourage sales, a customer is offered a pen or other item.
Customers collect points with purchases, which can be exchanged for other goods or services.
A customer purchases one product at the normal price and gets another product free.
Money is taken off the original selling price e.g. 10% off
Describe how 'loyalty schemes' work as a sales promotion technique
To encourage sales, a customer is offered a pen or other item.
Customers collect points with purchases, which can be exchanged for other goods or services.
A customer purchases one product at the normal price and gets another product free.
Money is taken off the original selling price e.g. 10% off
Describe a disadvantage of 'discounts'
Can generate sales if the prizes are something the customer wants to win,
Customers will notice the original selling price which is higher and know they are saving money.
Often customers don't see the competition or may not be interested in the prize,.
The business will make less revenue from discounted products
Describe an advantage of 'Loyalty Schemes'
Impulse purchases are often made by customers and the products are easily accessible to them.
Encourages repeat custom
Customers may forget their cards and miss gaining points
It can encourage unhealthy food choices and generate bad publicity e.g. sweets being bought for children.
What type of promotion is shown in the picture?
Free samples
Free gifts
point of sale displays
Competition
Which line is missing ?
fixed costs line
total costs line
total revenue line
shaded area = loss
shaded area = profit
selling price = £ 40
selling price = £ 360
selling price = £ 4
selling price = £ 3
Selling price = £12 and variable cost per unit = £8, therefore
unit contribution = £20
unit contribution = £4
unit contribution = £96
unit contribution = £1.50
Which are fixed costs ?
materials, packaging
rent, insurance
production labour wages, energy
delivery fuel, postage
Which would reduce the amount needed to breakeven ?
lower selling price
higher variable cost per unit
higher fixed costs
higher selling price
Which would reduce fixed costs :
cheaper materials
lower production wages
re-negotiate rent
cheaper packaging
Profit = total revenue
plus total costs
minus total costs
multiplied by total costs
What is an advantage of using social media as advertising?
It can be free/cheap
It appeals to only a younger audience
It is easy to get right
YouTube
How a business informs customers of their products and persuades them to buy
Price
Promotion
Product
Place
What is price skimming?
An initially high price charged to customer which will reduce over time
An initially low price charged to customer which will increase over time
A steady price charged to customer regardless of product age
What is meant by Psychological pricing strategy?
Items are offered at an uneven number to appear cheaper encouraging sales (eg £9.99)
Items are sold using a special promotional offer which is brightly coloured and attracts attention
Items are sold at production cost price to attract customers into the store and increase purchases
What are the components of the marketing mix?
Product, price, place, promotion
Quality, quantity, cost, competition
Supply, demand, profit, loss
Advertising, sales, distribution, branding
Which part of the product life cycle is when sales are high but not increasing
Introduction
Growth
Maturity
Decline
Kellogg's making well-known cereals into cereal bars is an example of
an extension strategy
an expansion strategy
a development strategy
What is happening at point F of the Product Life Cycle?
Growth
Maturity
Extension Strategy
Introduction
Sales start to drop during the ___________ phase.
Introductory
Maturity
Growth
Decline
The marketing Mix has_________ elements.
3
2
4
PR can help a business by
Promoting a positive image
Selling products
Destroying a businesses image
None of the above
Press release is specific tool of ...
Advertising
Public Relations
Marketing
Which one of the following choices is a low cost?
billboard
catalog
press release
flyers
(a)
(a)
The difference between the actual output and the breakeven level is known as the:
Buffer zone
Minimum cost line
Current ratio
Margin of safety
If the margin of safety is 7,500 units and breakeven output is 12,200 units, what is actual output?
4,700 units
19,700 units
$19,700
$4,700
A business loan requires :
endless payments
interest payments
dividend payments
no repayments
Which involves more investors ?
business angel
crowdfunding
peer-to-peer finance
What type of finance is where you ask successful entrepreneurs for money for a percentage of your profits?
Friends and family
Loan
Business Angel
Crowdfunding
What type of finance is where you apply for a small amount of money that you do not need to pay back?
Friends and family
Own Savings
Government Grant
Crowdfunding
What word means the money used to start up or grow a business?
(a)
What is an entrepreneur?
Someone who is employed
Someone who doesn't work
Someone who has set up their own business
Someone who works from home
What is information collected about opinions and views called?
Quantitative data
Qualitative data
Segmentation
How does accurate market research help a business?
By avoiding risk
By reducing risk
By eliminating risk
What does a market segment identify?
All the products in the market
Competitors
Groups of people with similar buying habits
Which of the following is an example of primary research?
Internet research
A focus group
Company reports
What is market segmentation?
The process of splitting up a business into different departments
The process of splitting up a target market into different groups
The process of splitting up the products of a business into different categories
What does demographic segmentation relate to?
Demographic segmentation considers where people are located
Demographic segmentation considers people’s interests and hobbies
Demographic segmentation considers people’s characteristics such as income and gender
Which market segmentation method is selected when classifications of age, gender or income are used
Behavioural
Psychographic
Demographic
Geographic
Which are fixed costs ?
materials, packaging
rent, insurance
production labour wages, energy
delivery fuel, postage
