These are the knowledge checks for the whole of Theme 1: Marketing and people.
This document goes from 1 The Market until 25 Moving from entrepreneur to leader.
Part of the AS/A Level specification it condenses the information from each chapter and is a really great revision resource.
Knowledge checks for Theme 1: Marketing and people
The Market Knowledge Check
1. What is the difference between a mass and niche market?
A mass market caters for all consumers in the same way. They mass produce a small number
of products and sell them at a cheap rate. They are fast-moving consumer goods compared
to a Niche Market which has a smaller segment of the market. This sells to a small customer
group sometimes made for specific needs. This means that they may avoid competition and
can sell at a higher price.
2. What is a key advantage of selling in a mass market?
They only produce a small number of products and can shift large numbers of stock
constantly at a cheap price.
3. State two disadvantages of selling in a niche market?
Smaller segment of the market which means less consumers. They also have a higher
expense because they have tailored products for the customer.
4. How is the market share calculated?
Sales of a business / Total sales in the market x 100%
5. State three advantages of giving products brand names?
To distinguish from other competitors. To charge a premium price for the product and
create customer loyalty.
6. State two advantages to customers of online retailing?
An online retailer is open 24/7 so the customer can always access the store. Customers can
buy products from across the globe and not necessarily within the same country.
7. What is meant by a dynamic market?
A dynamic market is constantly changing. This could mean that they grow, shrink or
disappear and companies constantly must adapt to stay within the market.
8. How might the nature of a market change over time?
A market might change depending on many variable factors. For example, now people are
more health conscious, so the organic food market is growing. People are also trying to cut
down on plastic, so the bottled water market is decreasing. The more that people are
aware, the quicker the market will change depending on the factor.
9. State three reasons why a market might grow?
It might grow due to economics. If a market has more money entering it, then the market
segment will increase. It may grow due to innovation and different companies releasing new
,products. It may also change due to demographic change such as the fact that the
population is aging which means that specialist companies are needed.
10. Describe two ways a business might adapt to changes in the market?
By committing market research in order to understand the changing consumers and the
growing market. They may also invest more into the company by releasing a new product or
updating the technology in the company.
,Market Research Knowledge Check
1. How might market research reduce the risk in business?
Market research will reduce the risk of failure in the business products that are researched
are more likely to be successful as they can adapt to the market.
2. State 2 benefits that a market orientated business might enjoy.
It can adapt more quickly to changes in the market because of market information. They will
also be able to anticipate market changes.
3. State 3 advantages of primary research.
It can be directly for the business.
It’s easier than secondary research.
You can target you want.
4. What is meant by desk research?
Desk research is the same as secondary research and means that the business collects
information which already exists.
5. State four sources of data for secondary research?
Existing market research reports. Sales figures. Information from competitors. Government
publications.
6. What is meant by quantitative market research?
Quantitative research involves the collection of data that can be measured. This usually
means statistical data such as sales figures and market data.
7. Why might qualitative data be open to different interpretations?
Qualitive research involves the collection of data about attitudes, beliefs, and intentions. It
is open to different interpretations because it different depending on the person and their
ideas around the product. This means that there are often disagreements within the
business.
8. How might a business use social media to conduct market research.
A business might use social media because it is a cost-effective way of market research. By
simply searching the latest posts and trends they can quickly adapt to that market.
9. Give three advantages of using online surveys.
It is cheap to do.
More people are likely to reply.
The responses are received quicker.
, 10. How might a business use databases for market research?
Using a database means that a business can put all of its sources together including sales,
customer survey results and mailing lists.
11. What is meant by behavioural segmentation?
Behavioural segmentation attempts to segment markets according to how consumers relate
to a product. There are a number of different methods of behavioural segmentation
including usage rate and loyalty.
12. State two benefits of market segmentation.
Businesses can avoid wasting promotional materials.
Customers may be more loyal to a business.
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