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MS ELHABASSI BUSINESS > 1.1 Meeting Customer Needs > Flashcards

1.1 Meeting Customer Needs Flashcards

1
Q

What is a mass market?

A

When a business sells to the largest part of the market

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2
Q

What is a niche market?

A

When a business sells to a smaller segment of the market

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3
Q

What are benefits of a mass market?

A
  • Widest customer base
  • low risk
  • lower research costs
  • economies of scale
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4
Q

What are the benefits of a niche market?

A
  • Low competition
  • clear focus/target
  • builds up specialist skills
  • can charge a higher market price
  • high profit margins
  • loyal customers
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5
Q

What are the drawbacks of a niche market?

A
  • Lack of economies of scale
  • can attract competition
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6
Q

What is a dynamic market?

A

One that is subject to rapid and continuous change

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7
Q

What is a market map?

A

Visual tool used by businesses to identify different brands selling similar products on 2 diff variables

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8
Q

Benefits of a market map?

A
  • Gap in the market
  • Analyse competitors
  • encourages market research
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9
Q

Drawbacks of a market map?

A
  • limited products
  • limited variables
  • time consuming
  • not a measure of success
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10
Q

What are the sources to change?

A
  • Customer tastes
  • impact of technology
  • impact of new market entrants
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11
Q

What are the benefits of online retailing?

A
  • Open 24/7
  • Convenient
  • low variable cost
  • stock all on display
  • national market
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12
Q

Drawbacks of online retailing?

A
  • customer service may be poor
  • very competitive
  • IT skills needed
  • fraud problems
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13
Q

What are the benefits of product orientation?

A
  • Focus on quality
  • encourages innovation
  • Improves Labour skills
  • Improves b2b outsourcing
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14
Q

What are the drawbacks of product orientation?

A
  • Potentially limits market opportunities
  • Product obsolesce possibility
  • disregards customer needs
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15
Q

Benefits of market orientation?

A
  • improves customer loyalty
  • Continuous investment in customer feedback
  • responds quickly to the market
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16
Q

What are the drawbacks of market orientation?

A
  • Reactive rather than proactive approach
  • not always innovative
  • hard to adapt
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17
Q

What is market research?

A

Collection and analysis of data to inform a business about it’s market

18
Q

What is primary research?

A

Data you have conducted yourself

19
Q

What is secondary research?

A

Research already conducted for you

20
Q

What are the benefits of primary research?

A
  • up to date reliable
  • no bias
  • specific to market
21
Q

What are the drawbacks of primary research?

A
  • Time consuming
  • sampling may not be representative
22
Q

What are the benefits of secondary research?

A
  • Cheap
  • quick
  • easy access
  • good source of market insights
23
Q

What are the drawbacks of secondary research?

A
  • Can be unreliable
  • not catered to the business
  • not always up to date
  • specialist reports are expensive
24
Q

What is qualitative data?

A

Gathers thoughts and opinions

25
Q

What is quantitative data?

A

Gathers data and measures responses (numerical data)

26
Q

What is the benefit of qualitative data?

A
  • Detailed
  • opinions
  • Essential for product development
27
Q

What are the drawbacks of qualitative data?

A
  • Long and the consuming
  • requires specialist research skills
  • opinions are hard to analyse
28
Q

What are the drawbacks of quantitative data?

A
  • not detailed
  • less specific
  • may lack reliability
29
Q

What are the benefits of quantitative data?

A
  • easy to analyse
  • Quicker to gather
  • can be compared with previous data
30
Q

What are the advantages of sampling?

A
  • Avoids bias
  • can reduce risks and cost
  • sampling is flexible
31
Q

What are the disadvantages of sampling?

A
  • Not fully representative
  • size of sample
  • sample may be carried out inaccurately
32
Q

What is market research used for?

A
  • Anticipate customer needs
  • quantify likely demand
  • gain insight on consumer behaviour
33
Q

Use of IT in market research?

A
  • Computers speed up process
  • internet data gathering is cost effective
  • data is more reliable when not rushed
34
Q

What is market segmentation?

A

Segmenting the market into subgroups based on characteristics

35
Q

What are the benefits of market segmentation?

A
  • advertising is targeted at specific market segment
  • most profitable market / customer can be identified
  • helps firms improve existing products
36
Q

What is market positioning?

A

Where a product is placed in the market relative to competitors

37
Q

What is a competitive advantage?

A

Adding a feature to a business that allows it to perform more successfully than others

38
Q

What is product differentiation?

A

Having a unique feature that makes the product stand out from other products in the market

39
Q

What is added value?

A

The diff between the price charged and the cost of inputs

40
Q

What are the 5 ways to add value?

A
  • Usp
  • quality
  • convenience
  • branding
  • Design

MS ELHABASSI BUSINESS (7 decks)

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