1.1 Meeting Customer Needs Flashcards
What is a Mass Market?
are aimed at a large group of buyers the product has a wide appeal
What is a Niche Market?
aimed at specific group of buyers is specialised to meet the particular requirements
What is Market Size
is the total value of sales and is measured by the total number of consumers
How do brands in a Mass Market make their brand distinctive?
through clear branding that is indevidual, be different from other brands and DONT coppy
Why do firms in dynamic markets need to adapt and change?
consumer preferences can change
innovations from competitors means growth of markets
Consumers always change the way that they shop
leguslation changes
What are the benifts of Online Retailing?
A Businesses costs are low because no physical location and no need to hire staff
customers can order anytime and anywhere in the world
customers can compare prices and find the lowest prices
What are the drawbacks of Online Retailing?
More competition as customers can easily shop around
customers like to see products before they buy and like to speak to staff
Businesses have a duty to ensure all personal information is cyber protected and can be expencive
What is direct competition?
is when two or more businesses sell similar things that appeal to the same target market
What is indirect competition?
is when two or more businesses sell products that are different but are competting for the same customers
How does Competitors effect how businesses operate?
need to enure product is good quality
unique appeal
their products are noticed in a huge market
inform customers about the business message
needs to have same quality but lower price to be competitive but can sometimes not be possible
easy for customers to access
What is a risk?
is something that businesses can antisipate and prepare for and could have been controlled
What is Uncertainty?
Are unexpected events they are oftern something that could happen but is dificult to predict when it will actually happen. Eg. Weather Storms
What is Product Orientation?
when making a product the marketing choises are only focued on the design, quality and performace rather than what the customers actually want.
What is Market Orientation?
Is when a business focusess most clearly on their customer preferences and invest into losts of market research to achieve this
What is Primary Market Research?
Is where the businesses conduct the research so is specific to the business
What is Qualititive Data?
Is based upon customer opinions of and usually is data from open long questions
What is Quantitive Data?
produces numerical data and is usually taken from multiple choice questionaire questions
What are some example of Primary Market Research?
Test Marketing, Survays, observations, Focus Groups, Interveiws
What is secondary Market Research?
invloves using data that is already availaible.
What are some examples of Secondary Market Research?
governement publications, omternet sources, market reports, magazines / TV / Radio
What is Representative Sample?
when primary reserach is done and samples of people are used rather than the whole market
What is Social Networking?
is the use of internet based platforms to make connections with people ideally customers
What are the different ways to segement a market?
Demographic - Age, Gender, Social Economic Class
Geographical - Where you live
Income - Eg expencive brands aimed at high imcome based customers
Behavioural - amount of use, lifestyle, Hobbies interests
What is Market Mapping?
Compare two featues of Products or Brands and extreme things that are important to customers eg Low price vs high quality.
What can Marketing Maps do?
Reveal a gap in the market
the closest competitiors and where best to market their business
how much customers expect to pay for a good quality product
However can simplify things too much
Name some Competitive Advanatges?
Low Costs
Product Innovation
Advertising and Marketing
Differentation
Reliable and Quality
Reputation
Customer Service
Convenience
How do you Calculate Added Value as a result of Competitive Advanatge
Added Value = Price Product sold for - cost of making product
