Marketing Foundations
What is marketing?
Marketing is the activity or business of promoting and selling products or services, including market research and advertising.
Is SWOT analysis internal, external, or a mix of both?
Both, typically strengths & weaknesses are internal, opportunities & threats are external.
Give one example of personal selling.
Face to face salesperson at the door, farmers market, car salesperson
What is the main difference between the public and private sectors
Public - state/government owned for the people, financed from taxes, profit is not main goal. (Firefighters, police, NHS)
Private - Owned & financed by private individuals, most aim to make a profit (unless charity). (Amazon, Apple, Starbucks)
What is the name for the money shareholders receive from a company, usually each year?
Dividends
What does USP stand for?
Unique Selling Proposition - differentiates you from competition. What do you do really well that others don't?
What does PESTLE stand for?
Political, Economic, Social, Technological, Legal, Environmental
Name four things that make up a brand.
Visual design, product features, customer experience, brand identity
Give 3 examples of the Public sector
Firefighters, police, NHS
Name four ways a business can raise finance.
Loans, retained profit, selling of shares, investors, crowdfunding, grants
What is Guerilla marketing?
What do market share and market growth mean, and how are they different?
Market Growth – How fast the market is expanding (the increase in demand over time)
Market Share – How much of the market the company controls (% of total sales in an industry controlled by the company
Eleven eats Eggo Waffles in Stranger Things. What type of advertising strategy is this?
What is the main difference between incorporated and unincorporated businesses?
Unincorporated -A business that is not registered as a company. The owner and the business are legally the same. Cannot issue shares! (Sole traders,partnerships)
Incorporated - A business that is legally registered as a company (e.g., Ltd or PLC). It has a separate legal identity from its owners. Can sell shares (Private Limited Company (Ltd), Public Limited Company (PLC))
What is meant by economies of scale?
A term that describes the cost advantages gained by companies when production becomes efficient, resulting in lower per-unit costs as output increases.
When fixed costs are spread over more units
What is the difference between qualitative and quantitative data? Give one example of each.
Qualitative Data is Descriptive, non-numerical data that explains why things happen. (Customer opinions,feedback)
Quantitative Data is Numerical data that can be measured and analyzed statistically. (E.g Sales figures, website data)
Give two examples of social factors in a PESTLE analysis and 1 Political
Political - Government policies, monetary policies,industrial policies, political party system, international trade, economic planning
Economic - Unemployment levels, inflation rates, interest rates, exchange rates, level of tax, economic growth
Social - Cultural, education levels, health index, demographics, lifestyle
Give two real-world examples of dynamic pricing.
Airplane tickets, uber, amazon
Which type of business ownership has unlimited liability, and why is this a risk?
Unincorporated - sole traders & partnerships. Risky because personally responsible for all debts of business - if can't pay will take stuff away
Explain one disadvantage of economies of scale for a business.
Name four demographic factors businesses use for market segmentation and explain why demographics matter.
Age, gender, income, location, family structure, religion, occupation, education, lifestyle, etc
Allows companies to identify specific target audiences, personalize marketing campaigns, and increase sales efficiency
In the Boston Matrix, which category has high market growth but low market share, and what strategic challenge does it present?
Question Mark -
The main challenge is deciding whether to invest or withdraw.
Explain 3 reasons how a strong brand can allow a business to charge higher prices than competitors.
Customers perceive higher value and quality
Amira runs a business with two family members. The business can sell shares, but not to the general public, and the owners have limited liability. What is the legal structure?
Ltd - Private Limited Company
What are the four economic sectors, and which one focuses on knowledge, innovation, and research?
Primary - natural resource extraction, farming, fishing, forestry, mining
Secondary - Manufacturing/processing raw materials (car factories, textiles, construction, food processing)
Tertiary - Services (retail, banking, education, healthcare)
Quaternary - Knowledge-based activities & innovation. (IT services, research & development, consultancy, high level education)