1.1 Meeting Customer Needs

Question 1

Mass market

Answer 1

A market aimed at broad segments with firms operating in large volumes

Question 2

Characteristics of a mass market

Answer 2

-Economies of scale
-High sales volumes
-High competition
-Low loyalty

Question 3

Niche Market

Answer 3

Smaller, specialised segment of a market with specific customer wants and needs

Question 4

Characteristics of niche markets

Answer 4

-Customer loyalty
-Low sales volume
-Lower competetion
-No economies of scale-> higher costs

Question 5

Market share and equation

Answer 5

proportion of a firms sales compared to the whole market (sales of firm / total sales in market x100)

Question 6

Market size and equation

Answer 6

sales revenue or sales volume in a market
(price x qty sold)

Question 7

What is Branding

Answer 7

A name, logo, image that helps a firm stand out from its competitors

Question 8

Why do firms want a brand

Answer 8

Brand->product more desirable-> add value-> increase prices

Question 9

Dynamic Market

Answer 9

Market subject to rapid change

Question 10

Online retailing pros and cons (form of dynamic markets)

Answer 10

P- Access to more consumers internationally
- 24/7 service allows more sales
-lower fixed and variable costs as no rent
C- Online retailing is dominated by large firms
- Higher competition
-No personal contact

Question 11

Ways how markets change (3)

Answer 11

Changing consumer tastes/ preferences
Changing demographics
Changing laws

Question 12

How does competition effect markets 3

Answer 12

Lower prices for consumers
Better quality products
Better customer service

Question 13

Product orientation vs Market orientation

Answer 13

Product orientation is when the firm focuses on the characteristics of the product rather than consumer needs
Market orientation focuses on customer needs then looks at the product features based off that.

Question 14

Primary research and its methods 3

Answer 14

Gathering of information taken by the firm and doesn’t already exist
Surveys
Focus groups
Interviews

Question 15

Pros Cons of Primary research 3,2

Answer 15

P- focuses on what the firm actually need
-in depth information
-up to date
C-Bias
- Can be expensive and time consuming

Question 16

Secondary Market research and methods

Answer 16

Research collected that’s already taken place

Question 17

Pros and Cons of secondary market research 3,3

Answer 17

P- Quick and easy to gather
-Cheaper
-Can help small firms who can’t afford primary

C-May be out of date
- Expensive
-May be factually incorrect

Question 18

What is Market mapping

Answer 18

A tool for identifying the position of a product within a market

Question 19

Usefulness vs Limitations of a market map 2,3

Answer 19

U- market gaps identified-> USP
-simple to create

L-requires primary research which may be expensive
- Only two criteria’s
-Only shows a specific point in time

Question 20

Competitive advantage

Answer 20

Features of a firms product that is superior to its competition

Question 21

sources of competitive advantage 9

Answer 21

Price, quality, design, reliability , customer service, delivery times, ethics, reputation

Question 22

Added Value

Answer 22

Difference between the price charged and the cost of making the product

Question 23

Methods of adding value (4)

Answer 23

Design, product differentiation, branding, customer service