Marketing

Which type of market research involves collecting new, first-hand data?

In which stage of the product life cycle do sales grow most rapidly?

What is price skimming?

Which one of the following is a method of promotion?

Segmenting a market by age is an example of segmentation by:

Explain two benefits to a business of using social media for promotion.

Case study (fictional business written for this paper): Lumen & Loom is a partnership making hand-poured candles in Norwich. It sells at craft markets and through its own website at £18 per candle. Its USP is scents based on Norfolk places. Sales have stopped growing. It is considering a monthly subscription box. Cash-flow forecast (£):

	Jan	Feb	Mar
Opening balance	2,000	2,200	?
Cash inflows	5,000	4,000	6,500
Cash outflows	4,800	5,600	5,200

Define 'unique selling point' (USP).

Explain one way Lumen & Loom could extend the life cycle of its candles.

Analyse the benefits to Lumen & Loom of introducing a subscription box.

Evaluate whether Lumen & Loom should carry out primary market research before launching the subscription box.

Option 1: reduce the price of candles to £14. Option 2: pay social-media influencers to promote the brand. Justify which option Lumen & Loom should choose to increase sales.