1.1 Flashcards
Mass market?
This is the market that is aimed at the general population.
Niche market?
A subset of the main market and addresses a specialist need.
Advantages of a mass market?
•target more people
•More revenue
•Large scale production means economies of scale and Lowe average unit costs.
•High revenues can be pumped into research and development.
Disadvantages of a mass market?
•Lots of competition
•Homogeneous products need to be differentiated through marketing which can be expensive.
•High volume production may not be flexible enough to keep up with changes in demand.
What is a dynamic markets?
A dynamic market is one that is subject to rapid or continuous changes.
What is market size?
Market size can be estimated or calculated by the total sales of all businesses in the market. It is usually estimated by value and volume.
What is market share?
Market share is used to describe the proportion of a particular market that is held by a business, a product or a brand.
What is the market share equation?
Sales of a business/ Total sales in the market X 100
What is online retailing?
Online retailing involves shoppers ordering goods online and taking delivery at home.
What is the +/- of “buying around the clock”.
+ Customers can buy whenever and is convenient for any deals they could potentially get.
- If you order late at night, your order may not be processed till the morning.
What are the +/- of “harder to try before you buy”?
+know what size to buy
- they are having to buy it and if they don’t like it then they have to pay for shipping if needs be.
What are the +/- of “websites must be safe and secure.”?
+More trustworthy
-May not trust it.
+/- of “products are delivered”
+Don’t have to leave the house
-May take a while to arrive or package may be lost, have to reschedule pick up.
+/- “geographical purchasing”
+Safe and secure tracking is easy and you can access a store you may not have access too.
-Charge more for shipping.
+/-“There is greater price transparency”
+customer can buy for cheaper in other places.
- May have to pay for shipping.
+/-“ personal selling being more difficult”
+cheaper online
-May have to research the product and struggle to remain focused.
+/-“Products can be piled in a warehouse rather than laid out in a store”
+There is potentially loads in stock
-Clothes could be old/dusty and bugs could be lerking.
What is competition?
Competition occurs when two or more businesses act independently to supply goods and services to the same group of consumers.
What is Risk?
Something that can be planned for profitabilities of outcomes are known or at least understood or considered.
What is uncertainty?
Caused by unexpected events outside of the businesses control.
What is marketing?
Selling the right product, in the right place, at the right time, and at the right price.
What is a market?
Where buyers and sellers meet
What are types of purchases
Routine purchases
Limited Decision purchases
Extensive decisions
Impulse purchases
What is product orientation?
An approach to a business which places the emphasis upon the production process and the product itself.
What is market orientation?
An approach to business which places the needs of consumers at the centre of the decision making process.
What are the tools of market orientation?
Market research
Market testing
Customer focus
What are the tools of product orientation?
Product research
Product testing
Product focus
What is Market research?
Gathering, presenting and analysing information about the marketing and consumption or goods and services.
What are the two types of research?
Primary
Secondary
What is primary research?
The process of collecting and analysing data first hand.
What are types of primary research?
Questionnaire
Postal surveys
Telephone interviews
Personal interviews
Focus groups
Observation
Test marketing
+ of primary research
•Can tailor questions to your business
•Up to date info
- of primary research
• expensive
•time consuming
•possibility of bias
What is secondary research?
> The collection and use of data and information which has already been collected and published by somebody else for an entirely different piece of research.
What is internal data?
> Data that exists within a business
-Existing market research reports
-Sales figures
-Annual accounts and reports
What is external data?
> Data from outside the business
-Information form competitors
-Government publications
+ of secondary research?
-Free/ low cost
-May be based on large samples
-Good overview of the market
-of secondary research?
-may not be up to date
-not tailored to your needs
What is qualitative data?
Collected when the opinion of the consumers is needed. Often collected through primary research.
What is quantitative data?
Related to facts and numbers and is easier to interpret than qualitative data.
What are questionnaires?
a list of written questions, responses recorded views and opinions.
What are the two types of questions asked in a questionnaire?
Open- The respondent can give any answer they wish. qualitative
Closed- There is a selection of answers to chose from e.g. yes or no
what are advantages of a larger market share?
-Brand recognition/reputation
-More control
-less cost
-EOS
-Dominating the market; setting prices
-Increased sales
How do you increase market share?
-Improving quality of products
-Advertisement
-Improving customer service
-Innovate and release new products
What is market segmentation?
Involves dividing a market into pairs that reflected different customers needs and wants.
What are the main categories of market segmentation?
-Location/geographic
-Income
-Demographics
What is location/geographic?
Dividing a market into different geographical values.
What is income towards market segmentation?
Dividing markets into different income segments, often based on socio economic grouping.
What is demographic towards market segmentation?
Dividing a market into segments based on demographic variables such as age, gender, family, lifestyle, religion, nationality, ethnicity, etc.
What is segmentation by lifestyle?
> Where customers can be grouped according to the way they lead their lives and the attitudes they share.
A business may decide to segment the market according to lifestyle.
This may be a combo of; values, attitudes, perceptions, belief’s?
what is segmentation by income?
> Population can be segmented according to annual salary
Population can also be divided into; low, medium and high income.
Establishing group’s disposable income is important so that products can be targeted to the relevant income group.
what is behavioral segmentation?
-Usage rate
-Loyalty
-Time and date
What are benefits of segmentation?
-More able to meet needs
-increased revenue
-customer loyalty
-wider range of goods
-wide variety of products, cater to customers
What is market positioning?
When a business has to consider how to position itself within a market in relation to its competitors.
What do you compare when buying a new product?
-Price value for money
-status
-Quality
What is business plan marketing activities used for?
> To shape a customers perception and how they view products/business.
-Benefits offered by the product
-USP
-Origin of product
-classification
What is market mapping?
Influenced by customer perceptions as their view influences sales.
What are uses of market mapping?
-Could be used to identify a gap in the market
-it could also be used by a traditional brand to reposition itself in the market
-It could also be used by a start-up to identify which products to produce or which services to provide.(Market orientated)
What is a competitive advantage?
-An advantage a business has over its competitors
-Win by being cheaper or by being different.
What is added value?
Can be achieved through a process of adding extra features which a business can offer
What is other types of competitive advantage?
-Innovation
-Reliability
-Quality
-Reputation
-Advertising
-Branding
