1.1 meeting customer needs

Question 1

define homogeneous product

Answer 1

products that are same/ alike

Question 2

define mass market

Answer 2

market that is aimed at the general public

Question 3

mass market advantages

Answer 3

-large scale production- economies of scale
-straightforward mass marketing
-large volumes of sales-high revenue

Question 4

mass market disadvantages

Answer 4

-high competition
-homogeneous products need to be differentiated through expensive marketing
-high volume production may not keep up with changes in demand

Question 5

define niche market

Answer 5

this is a subset of the main market and addresses a specialist need

Question 6

niche market advantages

Answer 6

-charge premium prices
-easier to target customers
-able to follow trends/ flexible
-less competition

Question 7

niche market disadvantages

Answer 7

-very risky as demand is not constant
-higher unit costs as no economies of scale

Question 8

define market size

Answer 8

the size of the market is the total of all the producers in the market

Question 9

market share

Answer 9

sales of x
—————————— x100
total sales in market

Question 10

define dynamic market

Answer 10

a market that is subject to rapid or continuous change

Question 11

product orientation

Answer 11

business only looks at the product or production
process when deciding what to make next. it’s appropriate when there is little competition

Question 12

market orientation

Answer 12

the consumer is the most important factor when providing products for the market

Question 13

define primary research

Answer 13

collecting data first hand

Question 14

define secondary research

Answer 14

collecting data that already exists

Question 15

define qualatative research

Answer 15

seek to gather and explore feelings and thoughts about a product from consumers

Question 16

define quantitative research

Answer 16

involves gathering data and measuring responses

Question 17

define marker segments

Answer 17

is an identifiable group of individuals or part of a market where consumers share one or more characteristic or need

Question 18

market mapping

Answer 18

the process of finding the variables which differentiate brands in a market and then plotting them on a map-to identify the gap in the market.

Question 19

competitive advantage

Answer 19

an advantage a business has over its competitors, allowing it to generate larger than average turnover for the industry. either in low leadership or price leadership

Question 20

three ways a business can achieve competitive advantage

Answer 20

Price , Added value, innovation, reliability, quality, reputation, advertising, branding, convenience, customer service

Question 21

define added value

Answer 21

added value is the difference between the price that is charged to the customer and the cost of inputs required to create a product or service.

Question 22

three ways a business can add value

Answer 22

Design, Production, Marketing