Share IGCSE BS 3.1-3.4 Final Review
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Identify THREE methods of primary research.
questionnaires, online surveys, focus groups, interviews
Identify one advantage and one disadvantage of conducting primary research
Advantage: up to date, first-hand info, not available to others vs. disadvantage: can be expensive, not available right away
Identify THREE ways to present data from market research.
Bar chart, pie chart, line graph, tally chart, table etc.
Outline TWO reasons why some markets become more competitive.
Globalization, Internet / e-commerce, transportation improvements
Outline one advantage and one advantage of operating in a mass market.
Advantage: Total sales are high, Opportunities for growth, Spread out risks vs. high competition, high costs of advertising, standardized products
Define niche marketing.
products are quite often specialized and sold by (smaller) businesses that would find it difficult to compete in a mass market
Provide FOUR ways in which you can segment a market
Income, age, race, location, by use of product, gender
Define market segment.
Market segment: an identifiable subgroup of a whole market in which consumers have similar characteristics / preferences
Define cost-plus pricing.
Cost-plus pricing: is the cost of manufacturing the product plus a profit mark-up.
Outline one advantage and one disadvantage of penetration pricing.
Advantage: Helps new products create impact, Ensure sales, Market share vs. Disadvantage: Lower profit / unit, signal lower quality
Explain when competitive pricing may be most suitable as a pricing strategy.
Maturity stage, a lot of competitors, want to avoid price wars.
Outline one advantage and one disadvantage of selling via retailers
Advantage: producer can sell larger quantities, reduced distribution costs vs. Disadvantage: no direct contact, price often higher for consumers
Explain when agents are most likely needed as a distribution channel.
When selling abroad --> local knowledge
Using a real-world example, explain the concept of dynamic pricing.
When customers are split into 2+ groups and are charged different prices for the same good because they have different sensitivities to prices (e.g. Uber)
Identify the TWO main types of promotional activities.
Sales promotions + advertising
Differentiate between informative vs. persuasive advertising.
Informative: emphasis of advertising is to give full info; Persuasive advertising: tries to persuade the consumer they really need the product and should buy it
