1.1 Market and people

Question 1

Define the terms mass and niche market and explain the characteristics of each

Answer 1

Mass market - a market made for all types of people and produce large in quantities .
Niche market - aiming for a specific market with specific needs .

Question 2

Explain the characteristics of mass and niche markets

Answer 2

Niche markets charge premium prices ,less competition

higher profit margins , target particular customers

Question 3

explain characteristics of mass and niche markets .

Answer 3

mass market - can use economies of scale , higher profit margins , higher advertising costs , fierce competition .

niche market - Charge premuim prices , target specific customers .

Question 4

what are the advantages and disadvantages of a niche market .

Answer 4

disadvantage - lack of economies of scale , vulnerable to market changes,

advantages - less competition ,high profit margins , customers tend to be loyal, can often charge higher prices

Question 5

Explain market size and market share

Answer 5

market share - a percentage of an industry or markets sales

market size - the number of individuals in a specific market

Question 6

What are dynamic markets ?

Answer 6

markets that are always changing .

Question 7

How can markets grow of change ?

Answer 7

• New developments in technology .
• Depending on the product served and if its in trend .
• The supply and demand
• The economy

Question 8

Describe how competition affects the market ?

Answer 8

rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Question 9

What are the types of competition

Answer 9

Direct
A firm that sells the same products and services as you in the same markets.

Indirect
A firm that sells different categories of products and services but are in the same industry and same markets. For example, a cafe and restaurant in the same city are indirect competitors.

Replacement
A firm that sells products and services that are in a different industry that could be used as a substitute for your products. For example, a restaurant and a supermarket in the same city.

Question 10

Explain the difference between risk and uncertanity

Answer 10

In risk, you can predict the possibility of a future outcome while in uncertainty you cannot predict the possibility of a future outcome.

Question 11

Describe the terms market orientation and and product orientation.

Answer 11

Market Orientation - is an approach to business that priorities identifying the needs and desires of consumers and creating products that satisfy them.This includes improvements in customer services .

Question 12

What are the advantages of market orientation ?

Answer 12

• Identify the customers needs
• More focused production
• More brand loyalty
• increase likelihood of repeat purchases
• Helps employees know there role more clearly

Question 13

What are forms of primary research ?

Answer 13

Research that you collect yourself .

including surveys , Interviews,Observations

Question 14

What are forms of secondary research ?

Answer 14

Research that’s already existing .

including articles ,reports ,government agencies, trade associations

Question 15

What are the limitations of secondary research ?

Answer 15

• Can be general and vague
• May be false information not accurate
• the company publishing the data may not be reputable .

Question 16

Explain how ICT can be used to supply market research .

Answer 16

• computers can be used both at the gathering stage and at the analysis stage to speed up the process.
• easy to use
• fast
• you can target a specific market

Question 17

What is market segmentation?

Answer 17

splits up a market into different types (segments) to enable a business to better target its products to the relevant customers.

Question 18

what does market segmentation offer ?

Answer 18

• to better match customer needs .
• retain more customers
• Enhance profits

Question 19

Explain how Business use market segmentation ?

Answer 19

a business can adjust its product lines and marketing techniques to appeal to each group more effectively by addressing their specific needs

Question 20

Describe the term competitive advantage ?

Answer 20

is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Question 21

Explain how a business can gain value .

Answer 21

Improving packaging or design 
improve customer service 
offer discounts 
increase convenience 
simplifying method of use

Question 22

How can a business differentiate its products ?

Answer 22

make products stand out in terms of price , quality , service , strong brand image ,unique selling point .