1.1 meeting customer needs

Question 1

What is a market

Answer 1

a market exists where buyers and sellers meet in order to exchange goods and services

Question 2

what is a mass market

Answer 2

a market that produces goods and services aimed at satisfying the needs of the whole market

Question 3

What is a niche market

Answer 3

A segment of the whole market which typically sells products specifically suited to the needs of the consumer

Question 4

dynamic markets

Answer 4

a market which is constantly changing - e.g fashion

Question 5

Benefits of mass markets

Answer 5

More customers / higher production levels which can allow EOS / Can use mass media ads

Question 6

Benefits of niche markets

Answer 6

Allows premium pricing therefore higher profit margins.

Question 7

How can you identify mass markets from niche

Answer 7

Mass markets typically sell generic products and are recognisable with branding whereas niche markets usually sell differentiated products with special features or functions

Question 8

How do markets change

Answer 8

PESTLE: 
Political - income
Economic - Recessions
Social - taste/preferences 
Technology - machines vs people
Legal - introduction of new laws
Environmental - the need for sustainability

Question 9

What is the importance of Innovation in a market

Answer 9

Rivals constantly compete to gain customer loyalty and being an innovative rivals gives you an advantage as well as opportunities to be the leading change within the market

Question 10

How do companies adapt to change

Answer 10

Understanding general trends through market research

Question 11

What stimulates the most change in markets?

Answer 11

Competition

Question 12

What can competition cause

Answer 12

The need to drive down costs
The need to maintain competitive costs
The need to be innovative
The need to maintain high quality products

Question 13

What is the Risk vs Uncertainty to a business

Answer 13

Risks can be predicted using statistics (quantifiable). The factors causing the risks are the uncertainties

Question 14

Examples of uncertainties

Answer 14

The reactions of rivals or consumers

Unexpected events like economic downturns

Question 15

What is Product orientation

Answer 15

an approach to making decisions that considers internal factors before worrying about changes in the market, This means that the business can focus on their own strengths.

Question 16

What is Market orientation

Answer 16

when the business creates a product based off consumers desires. More likely to lead to marketing success.

Question 17

What is Primary research

Answer 17

new research conducted for a particular purpose.

Question 18

Primary research - benefits/drawbacks

Answer 18

BEN - the data is up to day and can address specific issues

Neg - Expensive to conduct

Question 19

What is Secondary research

Answer 19

Uses pre-existing data that has been gathered for another purpose

Question 20

Secondary research - benefits/drawbacks

Answer 20

BEN - Often can be free like found on the internet and is performed very large scale
NEG - The information can be out of date and not very accurate

Question 21

Limitations to market research (why can it be unreliable?)

Answer 21

sample size is too small

sample bias

Question 22

How ICT can support market research

Answer 22

Social media offers information on consumers attitudes towards products, show trends and build a business-consumer relationship

Question 23

What is market segment

Answer 23

Splitting up the market into groups of consumers who share similar needs - therefore products are suited to customer needs