1.1 Meeting customer needs Flashcards
Market
Buyers and sellers meet to exchange goods or services
Mass market
A product or service that is aimed at a large group of buyers. This products has a wide appeal and is useful to a variety of people. (general)
Niche market
Product or service aimed at a specific group of people. The product is specialised to meet particular requirements of buyers in the niche market (more specific)
Market size
total value of sales in a market over a certain time period (usually annual)
measured by:
volume of sales
value=total spent by customers
Market share
Percentage of an industry or a markets total sales that is earned by a company over a time period
sales of x / total sales multiplied by 100
Competitive market
Multiple businesses in the same market that compete for customers
Brand
a clear and obvious logo/name/statement that customers can instantly recognise as being related to a certain product or business
Market growth
Change in the size of market or industry e.g. higher demand and sales
Dynamic market
In a process of constant change e.g phones
Online retailing definition (advantages and disadvantages)
Buying and selling products online
Advantages:
- costs are lower
- 24/7 availability for consumers
- consumers can easily compare prices
Disadvantages:
- more competition. ways to beat them by making it as easy as possible to encourage repeat purchase e.g saving details
- consumers sometimes like to see products before buying
- need to protect personal details from cyber criminals
Primary research methods (advantages and disadvantages)
needed to find out what consumers think of a new product
-surveys
-observation- seeing how customers navigate the shop so we can move products
-customer interviews
-test marketing- trying something to see how customers react
-focus groups
Advantages:
- specific so businesses cant benefit
- good for niche markets
Disadvantages:
- labour intensive
- expensive
- slow
Secondary research methods (Advantages and disadvantages)
already existing data
-government reports- main one is ONS
-trade publications- regularly published collection of articles
-market reports- reflects conditions of market in terms of products
-internet sources
-newspapers/magazines
Advantages:
- quicker
- cheaper
Disadvantages
- errors
- out of date
- not specific to business
Direct competition
when businesses sell similar products that appeal to the same group of customers e.g sainsbury’s and tesco
Indirect competition
Businesses sell different products but are competing for the same customers e.g. Indian and Italian takeaway both are competing for customers who want takeaway meals
