1.1 Meeting customer needs

Question 1

What is mass marketing?

Answer 1

Attempt to create products or services which have universal appeal

Question 2

What is niche marketing?

Answer 2

It is a very small segment of a much larger market

Question 3

What’s one characteristic of a mass market?

Answer 3

Has a long lasting, wide appeal that spans age groups and genders

Question 4

What’s one characteristic of a niche market?

Answer 4

Has higher unit costs but can charge a more premium price

Question 5

How does competition affect the market?

Answer 5

Competition stops businesses from getting careless and complacent, eg. low competition means companies can charge high prices

Question 6

What is a product orientated approach?

Answer 6

An approach which develops products based on what the companies good at doing and more focus on quality and design performance

Question 7

What is a market orientated approach?

Answer 7

An approach which responds to what customer want and works on meeting their preferences

Question 8

Advantages of a product orientated approach

Answer 8

• Can lead to increased economies of scale
• Business can focus on what it does best

Question 9

Advantages of market orientated approach

Answer 9

• As products designed for customer needs, higher chance of success
• Increased customer loyalty and satisfaction

Question 10

What is primary market research?

Answer 10

Involves collection of first hand data by the business

Question 11

What is secondary market research?

Answer 11

Involves collection of second hand data/data that already exists

Question 12

Advantages of primary market research

Answer 12

• Directly focused on research objective
• Not publicly available, can be a competitive advantage

Question 13

Disadvantages of primary market research

Answer 13

• Time consuming and costly to obtain
• Potential bias risk

Question 14

Advantages of secondary market research

Answer 14

• Often free and easy to obtain
• Good source of overall market insight

Question 15

Disadvantages of secondary market research

Answer 15

• Not specific to business needs
• Available to other businesses

Question 16

What is quantitive market research?

Answer 16

Research based on data and statistics

Question 17

What is qualitative market research?

Answer 17

Research based on opinions, attitudes and beliefs

Question 18

Advantages of quantitive market research

Answer 18

• Data relatively easy to analyse
• Numerical data can provide insights to trends

Question 19

Disadvantages of quantitive market research

Answer 19

• Focuses on data, so doesn’t answer the reasoning of certain trends
• May lack reliability if sample size and method isn’t valid

Question 20

Advantages of qualitative market research

Answer 20

• Key for new product development and launches
• Produces insights into consumer behaviour

Question 21

Disadvantages of qualitative market research

Answer 21

• Expensive to collect and analyse
• Based on opinions, always a risk sample isn’t representative

Question 22

What is sampling?

Answer 22

Gathering of data from a selection of respondents, which should be representative of the whole population

Question 23

Advantages of sampling

Answer 23

• Even small sample size can provide good insight
• Using it before making marketing decisions can reduce costs and risk

Question 24

Disadvantages of sampling

Answer 24

• If sampling is unrepresentative of population can lead to incorrect decisions
• Risk of bias

Question 25

What’s one way in which ICT can support market research?

Answer 25

Social media can offer info on consumers attitudes to a product

Question 26

What is market segmentation?

Answer 26

Dividing a market into different groups that reflect customers needs and wants

Question 27

Advantages of market segmentation

Answer 27

• Focuses resources on areas of the market where a business can succeed
• Allows business to grow share in a market

Question 28

Disadvantages of market segmentation

Answer 28

• Doesn’t mean you can reach the customers in the segment
• Markets and segments increasingly dynamic