Question 1: Define the term 'market segmentation' and explain why it is important for a business to identify different customer groups.

Answer: Market segmentation is the process of dividing a broad target market into smaller, specific groups of consumers with similar needs or characteristics. It is important because it allows businesses to tailor their marketing strategies to meet the specific needs of each group, increasing the effectiveness of campaigns and improving sales.

Question 2: Describe two methods a business might use to promote its products to potential customers.

Answer: A business might use advertising campaigns through TV, radio, or online platforms to reach a wide audience. They could also use social media marketing to engage directly with customers and promote products through targeted posts and interactions.

Question 3: Explain the concept of 'branding' and give an example of how a strong brand can benefit a business.

Answer: Branding refers to creating a unique image, name, and identity for a product or business to distinguish it from competitors. A strong brand can build customer loyalty, increase recognition, and allow the business to charge higher prices due to perceived value.

Question 4: Identify three different types of promotional activities a business can use and briefly describe each.

Answer: 1. Discounts and special offers to incentivize purchases. 2. Sponsorship of events or sports teams to increase visibility. 3. Direct mail or email marketing to communicate directly with potential or existing customers.

Question 5: Sketch a simple logo for a new eco-friendly cleaning product. The logo should include the product name and a symbol that suggests environmental friendliness.

Answer: A correct sketch would include a clean, simple design featuring the product name, with a symbol such as a leaf, recycling sign, or globe to suggest eco-friendliness. The design should be clear and memorable.

Question 6: List and explain two advantages of using social media as a marketing tool for small businesses.

Answer: Firstly, social media allows small businesses to reach a wide audience at a low cost, making marketing more affordable. Secondly, it provides an opportunity for direct interaction with customers, enabling feedback and building relationships.

Question 7: A business plans to target young adults aged 18-25. Suggest two marketing channels or strategies they could use to effectively reach this demographic.

Answer: They could use social media platforms like Instagram and TikTok, creating engaging and trendy content. They might also collaborate with influencers popular among young adults to promote their products.

Question 8: Explain what is meant by 'customer loyalty' and mention one way a business can build it.

Answer: Customer loyalty refers to customers repeatedly choosing a company's products or services over competitors. A business can build loyalty by offering excellent customer service or loyalty reward programs.