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Business Flash Cards > 1.1 Meeting Customer Needs > Flashcards

1.1 Meeting Customer Needs Flashcards

1
Q

Pros and cons of identifying their target market

A

Pros - focus your market research, may produce better research results for your money, focus tour marketing
Cons - miss out some potential customers

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2
Q

Definition of Coherent

A

Forming a unified whole

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3
Q

Definition of Market

A

Ant place where Uber and sellers come together to trade goods and services for money

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4
Q

Definition of Market Size

A

Value - the total value of all goods sold in the businesses
Volume - the physical quantity or numbers of customers

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5
Q

Definition of Market Share

A

The proportion of a market a single business or brand is responsible for

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6
Q

Market Share calculation

A

( Sales of one brand/total sales in the market ) x 100

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7
Q

Definition of Mass Markets

A

Markets where goods are produced in large quantities

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8
Q

Definition of Niche Market

A

Markets where goods are produced in smaller quantities
Smaller specialised markets

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9
Q

Pros and cons of Mass Markets

A

Pros - huge number of potential customers, economies of scale, higher revenue, the higher revenue can be put into research and development
Cons - can be large amount of competition, may need to spend high amounts on advertising to stand out from the competition, high volume production not flexible to chains consumer demand

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10
Q

Pros and cons of Niche Markets

A

Pros - a lack of competition, allow them to charge premium prices, can easily target customers, small flexible production allows them to respond to changing customer demand
Cons - can be too small to survive as demand may not be constant and product can go out of fashion quickly there is more risk, small companies may face competition from large manufactures and get pushed out of the market, high production costs due to lack of economies of scale

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11
Q

Definition of E-Commerce

A

Buying and selling of goods and services over an electronic network

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12
Q

How do markets change

A

The size
The nature
New markets

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13
Q

Definition of Market Research

A

The action/activity of gathering information about consumers’ needs and preferences

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14
Q

Benefits of a market research orientated business

A

More likely to create products that consumer want - less product failures
More accurate and defined promotion
Can anticipate market changes - allows flexibility

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15
Q

Definition of Primary Research

A

Data which is obtained first hand

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16
Q

Definition of Secondary Research

A

Collection of data that already exists

17
Q

Definition of Quantitative Data

A

Research that can be interpreted in numerical form

18
Q

Definition of Qualitative Data

A

Research that is based on thoughts, feelings and emotions

19
Q

Definition of Competition

A

Other companies in the market who sell similar products

20
Q

Definition of Risk

A

The possibility of something bad happening

21
Q

Difference between risk and uncertainty

A

Risk is a decision and something you can control whereas uncertainty is related to external factors and you cannot control it

22
Q

Definition of Product Orientation

A

An approach to business that places emphasis on the production process and the product

23
Q

Definition of Market Orientation

A

Places emphasis on placing the consumer at the centre of the decision making process

24
Q

Pros and cons of Product Orientation

A

Pro - less spending on market research, create a reputation for high quality, can find a competitive advantage/USP
Con - could be hard to sell to consumers as they haven’t been consulted, can lead to many product failures, development cost can be high, can be seen as inflexible

25
Q

Pros and cons of Market Orientation

A

Pro - less product failures, more accurate and defined promotion, anticipate market changes
Con - Market research is expensive, not all research is useful

26
Q

Why do companies conduct market research

A

Identify and anticipate customer needs and wants
Quantifiable the likely demand for a product
Provide an insight into customer behaviour
To assess the behaviour of competitors

27
Q

Pros and cons of Primary Research

A

Pro - information is specific to your business, provides detailed feedback, up to date, find out exactly what you need, easier to analyse
Con - very expensive, takes a long time to collect, maybe bias in questionnaire or interview

28
Q

Pros and cons of Secondary Research

A

Pro - cheaper, huge amount of information available, quick to collect, gives a good overview of the market
Con - not specific to your business, can take a long time to find what you need, can take longer to analyse, can be out of date

29
Q

Definition of Market Segmentation

A

Part of a whole market where a particulate customer group has similar characteristics

30
Q

What are the 4 type of market segmentation

A

Geographic
Demographic
Psychographic
Behavioural

31
Q

Pros and cons of market segmentation

A

Pros - different product for different segments - increase revenue, loyal customers, business avoid wasting promotional resources
Cons - Psychographic and behavioural segmentation will cost a lot it can be too simplistic, have use as many types of segmentation as possible, some segmentation methods do not apply to all products, can end up narrowing down your target market

32
Q

Definition of Market Positioning

A

The view consumers have about the quality, value for money and image of a product in relation to those of their competitors

33
Q

The different categories used to position a product

A

Quality
Value for money
Status
Practicality
Healthy
Environmental impact

34
Q

Methods of market positioning

A

Benefits of the product
Unique selling point
Attributes of the product
Origin of the product
Classification

35
Q

Definition of Market Mapping

A

Find out how consumers perceive their brand
Allows them to position their brand in the market or find gaps in the market
Results of this research can be shown in a perceptual map

36
Q

Limitations of Market Maps

A

Only 2 attributes can be looked at one time
Research is expensive to gather using primary research
Might be relevant for individual brands and not a whole image of a business
Some maps may only be based on marketing departments opinions and not market research

37
Q

Definition of Competitive Advantage

A

When a business stands out form their competitors
Business offers a customer better value, either by lowering prices or providing greater benefits and service which justifies higher prices

38
Q

How do businesses create a competitive advantage

A

Product design
Product quality
Promotion
Customer service
Delivery times
Flexibility
Ethical/environmental stance
Focusing on a market segment
Economies of scale

39
Q

Methods of adding value

A

Bundling
Customer service
Speed of response to customers
Packaging
Request buyer options

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