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Buisness > 1.1- Meeting Customer Needs > Flashcards

1.1- Meeting Customer Needs Flashcards

1
Q

What is Marketing?

A

process involved in identifying, anticipating and satisfying consumer requirements profitably.

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2
Q

What is a Mass Market?

A

where business sells into larger part of market where there are many similar products offered by competitors

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3
Q

What is a Niche Market?

A

where business targets smaller segment of a larger market where customers have specific needs and wants

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4
Q

Name 3 benefits of being in a mass market?

A

-widest potential customer base

-lower risk

-low unit costs

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5
Q

drawbacks of being in a mass market?

A

-Highly competitive
-Requires large investment in marketing

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6
Q

benefits of being in a Niche market?

A

-less competition

-profit margins higher

-customers tend to be more loyal

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7
Q

drawbacks of being in a Niche Market?

A

-vulnerable to market changes

-risk of over dependence on a single product

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8
Q

What is Market Size?

A

the total volume of a market
- in terms of number of sales or value of sales

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9
Q

Mass markets characteristics

A

-generic products- similiar in form, function
- customers form majority of market
- needs and wants more general
- higher output and capacity
- low cost, wide distribution

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10
Q

Niche market characteristics

A

-speciliats products/ services
- loyal customers
- higher profit margins
- lack economies of scale
- can attract competition if successful

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11
Q

What is market share

A
  • the percentage/segment of a market which a business controls
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12
Q

What is the Market Share Formula?

A

Sales of a business/Total sales in the market x 100

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13
Q

What is a dynamic market

A
  • a market which is constantly changing
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14
Q

Name 3 key sources of change in a dynamic market

A

-customers tastes and preferences

-impact of tech on what customers buy & how they buy

-impact of new market entrants

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15
Q

How does online retailing impact a dynamic market

A

-businesses face more competition as customers can easily shop around

-consumers- unable to physically see the products before buying

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16
Q

How does online retailing benefit a market

A

buisnesses cost

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17
Q

How do markets change
-summarise using PESTLE

A

PESTLE:
-political- leaving EU- change in importing and exporting

-economic- economic recession- changes in grocery retailing- ppl opted for aldi

-social- increased desire for convenience- ^ in inline retailing

-technological- apps- changed markets

-legal- growth in market for vapes- intro of new laws relating to who can buy them, advertisement, consupmtion

-environmental- car industry facing major changes- minimise damaging impact of exhaust fumes

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18
Q

How does innovation cause market growth

A

-competing firms continually develop features no rivals offer- so consumer loyalties chnage drastically

-once 1 innovation is successful- companies forced to adaot offerings to keep up with rivals

-so companies try to come up with own innovations to benefit by leading change in makret

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19
Q

Why do businesses have to adapt to change

A

-identifying subtle changes allows business to adapt to changes to meet customer needs

-changing earlier than rivals- major competitive advantage

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20
Q

Name 4 ways competition affects the market

A

-need to drive down costs
-need to maintain compeititve prices
-need to devlop innovative prodcuts and servives
-need to maintain high quality products and servivesc

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21
Q

What is product orientation?

A

-business develops products based on what it is good at doing

22
Q

What is market orientation?

A

-business responds to customer needs and wants- designs products accordingly

23
Q

What is primary research?
-give exazmples

A

-new research conducted for particular purpose

-surveys
-retailer research

24
Q

What is secondary research?
-give examples

A

-pre-existing data gathered for another purpose

-internet
-government statistics

25
Q

Advantages of primary research

A

-up to date data
-detailed insights

26
Q

Advantages of secondary research

A

-often free
-provides good market overview

27
Q

Disadvantages of primary research

A

-expenisve
-risk of bias from imterviewer

28
Q

Disadvantages of secondary research

A

-info may be out of date
-can be expensive

29
Q

What is quantitive data

A

-factual that aims to be statistically representative of the whole market

30
Q

What is qualititive data

A

-opinion- unlikely to be gathered on a alrge enough scale to give statsically reliable data

-designed to give insight into why customers behave the way they do

31
Q

Name 2 reasons why market research data may be unreliable

A

-sample size too small- means more chance that respondants who dont reflect overall views of market are over-represented in smaple

-sample bias- way responspendents are selected may cause certain ty[pes of people to be over-represented in the samplke

32
Q

Name 3 ways ICT supports market research

A

-websites- can gather data on vistors to website- provide info about online shoppers/ browsers interests

-social media- offer info on consumer attitudes to product/ service

-databases- allows vast quantities of data relating to consumers to be trwled to identify patterns that can explain how consumers behave

33
Q

What is market segmentation

A

-splitting up a market into different groups of consumers who share similar characteristics wants and needs

34
Q

3 benfits of market segmentation

A

-products and services can be designed to suit specific customers

-meeting customers needs precisely allows a higher price to be charged

-promotional activity is easier to target

35
Q

What is market positioning

A

deciding how you want customers to perceive your product

36
Q

What can market maps show

A

-gaps in the market

37
Q

Why are market maps beneficial for businesses

A

-by using a market map businesses can identify a gap in market

-they can then produce a product that matches the gap identified

38
Q

What is competitive adavnatge

A

circumstance that puts a company in a favourable/ superior business position.

39
Q

Name the 2 major generic routes to finding a competitive advantage

A

-being lowest cost producer

-finding a sustainable point of differentiation

40
Q

What is product differentiation

A

differentiating a product from others in the market to make it more appealing to the target audience.

41
Q

What are the purposes of product differentiation

A

-insulating products from actions of competitors

-allowing prices to be increased without a major fall in demand/ sales

42
Q

What is added value

A

-difference between the cost of brought-in goods and services and the selling price of a product

43
Q

Why is added value good for a business

A

-charge higher prices

  • without increasing costs of prodcuing a product will naturally add more value-
  • boosts profit margins- as gap between selling price and variable costs widens
44
Q

What is a market

A

where buyers & sellers meet to exchange goods/ services

45
Q

Name 2 aims of a mass market

A

-create products with universal appeal

-exploit economies of scale

46
Q

What is innovation

A

putting a new idea/ approach into action

47
Q

Name 3 benefits of innovation

A

-higher prices

-^ market share

-improved quality

48
Q

What is uncertainty

A

unpredictable & uncontrollable events that affect business

49
Q

What is risk

A

possibility things will go wrong

50
Q

Name 3 reasons why market orientation is crucial to marketing success

A

-markets are much more dynamic

–customers are becoming much more demanding

-barriers to market entry are getting lower

51
Q

What is market research

A

process of gathering data to help a business develop a product to meet customer needs

52
Q

What is monopoly power

A

large business which dominates the market

Buisness (22 decks)

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