1.1 -meeting customer needs Flashcards
mass market
aimed at large group of people
product has a wide appeal and is useful to a variety of people
larger market size
niche market
aimed at a specific group of buyers
specialised to meet particular requirements
less competition
market size
total value of sales in a market over certain period of time
market share
proportion of total market that the business holds
branding
creates a clear and obvious logo, name or statement that customers can instantly recognise
helps to differentiate from competitors
dynamic markets
constantly changing and evolving rapidly
how can a market change
- consumer preferences
- innovation - new products emerge
- ways in which customers want to shop may change- online
- competitors- enter or leave market
- changes in legislation- can affect products sold in market
businesses need to adapt and change to suit these changes in order to be successful and maintain market share
benefits of online retailing
- lower costs as dont need to have physical shop or hire as many staff
- customer can order at anytime from anywhere in the world
- customers can easily compare prices
drawbacks of onlie retailing
- businesses face more competition ad customers can easily shop around
- some products like to see products before they buy and may want to speak to staff
- businesses need to make sure customer personal deatilas are protected and kept safe from cyber criminals
competition
direct- 2 or more businesses sell similar products that appeal to the same group of customers
indirect- 2 or more products sell different products but are competing for same customers
how does competition affect how a firm operates
product- good quality, distinctive, lots of innovation, unique appeal
promotion - get products noticed, branding, celebrity endorsement
pricing- competitive pricing: penetration
place- easy for customers to access
risk
always a chance something could go wrong
probabliities of different outcomes are unknown
before making a decision a business ca consider the proabbility of negative outcome and minimise chance of this happening
uncertainty
unexpected events
often things firms know could happen nut difficult to predict if or when they will actually happen or what the outcome will be
external things a business cant control, bad weather
product orientation
focus heavily on design, quality or performance of products rather than what the consumer actually wants
market orientation
focus heavily on selling products that match customer preferences
invests a lot in market research
effective market research
- finds out what a customer needs or wants
- allows business predict how much demand there will be for its products , how much of product it will need to supply
- how consumers behave in relation to a product - in store, online
- how much consumers prepared to pay for the product
- ## identifying competitors
quantitive
numerical statistics - facts and figures
questionnaires multiole choice
- quicker and easier
qualitative
based on opinions of consumers
open questions
- more informative
primary research
gathers new data first hand
- in number of ways: questionnaores, surveys, observations, interviews, focus groups
- test marketing
- sampling
secondary data
using data that is already available
- government publications, reliable internet sources, market reports
- easier and faster and cheaper
- may be unsuitable
- out of date
- used to get initial understanding of market then business may do further primary market research
avoid bias
- increase accuracy or market research
- questionnaires, surveys, interviews should avoid biased questions
- both interviewers and respondants can cause bias
- interviewer bias can be cuased by personality of interviewer
- respondants may give answers that arent true because they are unsure or just want to fit in
technology in market research
- websites
- social networking- connect with customers through social media platforms, can post content and see the type of responses they get
- business databases- collect their own data to form a database about their products and consumers
segmentation
dividing market into groups of buyers- consumers in each segment share one or more characteristic
market research helps firm to segment market by revealing more about types of consumers in the amrket
different ways to segement the market
demographic- age, gender, socio economic class
geographic- according to city, country
income- high income customers, low income customers
behavioural- amount of use, lifestyle, hobbies and interests
