IGCSE BS 3.1-3.4 Final Review | Baamboozle - Baamboozle

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Define market segment.

Market segment: an identifiable subgroup of a whole market in which consumers have similar characteristics / preferences

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

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

Outline TWO reasons why some markets become more competitive.

Globalization, Internet / e-commerce, transportation improvements

Define cost-plus pricing.

Cost-plus pricing: is the cost of manufacturing the product plus a profit mark-up.

Identify the TWO main types of promotional activities.

Sales promotions + advertising

Explain when agents are most likely needed as a distribution channel.

When selling abroad --> local knowledge

Explain when competitive pricing may be most suitable as a pricing strategy.

Maturity stage, a lot of competitors, want to avoid price wars.

Define niche marketing.

products are quite often specialized and sold by (smaller) businesses that would find it difficult to compete in a mass market

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

Identify all six stages (in order) of the product life cycle.

Development, introduction, growth, maturity, saturation, decline

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

Identify THREE methods of primary research.

questionnaires, online surveys, focus groups, interviews

Identify THREE ways to present data from market research.

Bar chart, pie chart, line graph, tally chart, table etc.

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)

Provide FOUR ways in which you can segment a market

Income, age, race, location, by use of product, gender

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

Identify TWO features of a product at the maturity stage

Sales growth but slower, competition is intense, profits at its highest