Marketing and Business Development Flashcards

What is the primary purpose of market segmentation in business development?

Answer: To divide a broad market into subgroups with common needs

Market segmentation divides a broad market into distinct subgroups of consumers who share common characteristics or needs, enabling more targeted and effective marketing.

Which pricing strategy involves setting an initially high price for a new product and gradually lowering it over time?

Answer: Price skimming

Price skimming involves launching a product at a premium price to capture revenue from early adopters, then reducing the price incrementally to reach broader market segments.

What does the acronym SWOT stand for in strategic business analysis?

Answer: Strengths, Weaknesses, Opportunities, Threats

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats — a framework for evaluating internal capabilities and external market factors.

In the traditional marketing mix (4Ps), which element refers to the channels used to deliver a product to customers?

Answer: Place

'Place' in the 4Ps refers to the distribution channels, logistics, and locations through which a product is made available to the end customer.

What is a value proposition in marketing?

Answer: A statement explaining how a product solves customer problems or improves their situation

A value proposition clearly communicates the benefits a product or service provides and why it is superior to competitors' offerings from the customer's perspective.

Which type of market research involves gathering new, original data specifically for the current research problem?

Answer: Primary research

Primary research involves collecting original data directly from sources for a specific research purpose, such as through surveys, interviews, or focus groups.

What is the break-even point in a business context?

Answer: The point where total revenues equal total costs

The break-even point is where total revenues exactly equal total costs, meaning the business neither makes a profit nor incurs a loss.