Marketing
What's covered
Key facts
Percentage mark-up = (profit ÷ cost) × 100, where profit = selling price − cost. A product costing £40 and selling for £60 has a £20 profit, so the mark-up is 20 ÷ 40 × 100 = 50%.
An ageing population may shift product design for a high-street retailer because larger fonts and accessible packaging become essential — older customers' physical needs change.
An app is software designed for mobile m-commerce — installed on the device, optimised for the screen and OS.
Behavioural segmentation can target customers based on how often they buy — heavy users vs occasional users.
Television advertising in a prime-time slot is an example of above-the-line promotion — mass media, broad reach.
A biased or unrepresentative sample can mislead business decisions — wrong conclusions from skewed data.
% change = (new − old) ÷ old × 100. (£50,000 − £40,000) ÷ £40,000 × 100 = 25%.
The end user of a business's goods or services is called the customer — the person who ultimately buys and uses what the business sells.
Mobile apps usually collect data that helps businesses target marketing more accurately — location, behaviour, purchase history.
Targeting customers aged 18–25 is an example of demographic segmentation — splitting by age, gender, income, family stage.
Sample questions
A taste of the 104 questions in this topic, answers marked. Sign up to practise the full set with spaced repetition.
Which is a customer 'want' rather than a 'need'?
- •Basic shelter
- ✓Designer trainers
- •Drinking water
- •Warm clothing
Which is an example of m-commerce?
- ✓Buying a coffee through a phone app
- •Ordering from a printed paper catalogue
- •Phoning a call centre to order goods
- •Walking into a supermarket and paying cash
What is price skimming?
- ✓high then lowering price
- •low price to gain market share
- •pricing at the same level as rivals
- •setting price below production cost
What are the four stages of the product life cycle in order?
- •development, launch, peak, withdrawal
- ✓introduction, growth, maturity, decline
- •launch, expansion, plateau, decline
- •research, introduction, growth, saturation
What is advertising as a method of promotion?
- ✓A paid-for message sent to customers
- •A short-term price cut to boost sales
- •Free media coverage earned by the business
- •Paying to sponsor a sports team
Which is an example of demographic segmentation?
- ✓Targeting customers aged 18 to 25
- •Targeting customers who live in coastal regions
- •Targeting customers who prefer luxury brands
- •Targeting customers who shop only on weekends
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