1.1 meeting customer needs S Flashcards
shane
what is a market?
any medium in which buyers and sellers meet to make a form of exchange
what is marketing?
the management process responsible for identifying, anticipating and satisfying customer requirements profitably
what is a mass and a niche market?
mass:
>large market
>targets the majority of people with similar needs / wants
>high sales volume
>high competition
niche:
>smaller segment of a larger market
>customers have specific needs and wants
>may be specialised or luxury items
what are the advantages and disadvantages of a mass market?
advantages:
high sales volume
large amounts of loyal customers
disadvantages:
higher levels of competition
meaning lower prices
what are the advantages and disadvantages of a niche market?
advantages:
charger higher prices for a luxury item
lower levels of competition
disadvantages:
smaller amounts of customers
lower sales volume
what is market size?
how large a market is - measured in value or number of units sold
number of units sold x average selling price
what is market share?
measures the sales of a business as a % of the total sales in a market
sales of firm / total market sales x 100
what is market growth?
the rate of overall growth or decline of a market over time. calculated as a % change
change / original x 100
what is market research?
the activity of gathering information about customer’s wants, needs and preferences
what is a market orientated approach?
the decisions taken are based around information about customers needs and wants, rather than what the business thinks is right for the customer.
what is a product orientated approach?
businesses develop products based on what it is good at making or doing rather than what a customer wants.
whats the difference between primary and secondary market research?
primary - collecting information first hand for a specific purpose
secondary - the process of collecting data which has already been compiled for another purpose. the data already exists
what are the two main types of secondary data?
internal data - these are from the businesses own records and performance
external data - sources of information available to a business. traditionally in paper format but now they are in internet form
what is quantitative and qualitative data?
qualitative - data relating to opinions of quality eg what people think. subjective data that may be difficult to analyse
quantitative - data expressed in quantities and therefore statistical facts. it can be analysed easily
what is a dynamic market?
markets that change constantly. they are shaped by forces which change frequently eg. technological changes
what is online retailing (e-tailing)?
when buyers and sellers meet through virtual platform (such as ebay) and buying and selling occurs.
what is sampling?
the selection of a representative group of consumers from a large population and therefore a firm would select a group of consumers from the target market. the larger the sample, the more accurate the results.
what is market segmentation?
the classification of customers or potential customers into groups or sub groups with similar characteristics, needs and wants within a market.
what are the methods of market segmentation?
> demographic (age, gender)
geographic (regions of the uk)
income levels
behavioural
psychographic
what is market positioning?
how individual products or brands are seen in relation to their competition by consumers. this may stem from pricing, marketing or quality
what is the market map?
illustrates the range of positions that a product or service can take in a market based on two dimensions that are important to a customer eg. price and quality
what is added value?
the difference between the price paid and the total cost of the inputs needed to create a product
what are the benefits of added value?
customer - customers pay a set price, but they receive additional benefits, such as after sales service, a quality brand, to feel they’re making a change
business - costs are covered ensuring profit is made. customers show loyalty to the business leading to repeat custom and high rep
how can a business add value?
> creating a strong brand image
offering convenience
high quality and design
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