1.1 Meeting customer needs Flashcards
What is a market segment
a market segment is a subsection of a larger market in which consumers share similar needs and wants
What is a niche market
a a niche market is a small segment of a larger market
What are the benefits of mass marketing
-Huge potential number of customers
-Higher production levels allow economies of scale
-Can use mass media advertisement
What are the benefits of niche marketing
-Meeting consumer needs more precisely allows for higher prices to be charged
-higher profit margins
-easier to enter for firms with limited financial resources
What 4 things to consider in dynamic markets
-Online retailing
-PESTLE factors
- Innovation and market growth
-Adapting to change
What is the difference between risk and uncertainty
Risk is quantifiable allowing the use of statistics factors that cause risk are uncertainties
What is product orientation
Product orientation is an approach to making decisions that consider internal factors before the market changes
What is market orientation
Market orientation is an approach to making decisions that considers changes in the market before internal factors
What is primary research
Primary research is new conducted research for a particular purpose
advantages and disadvantages of primary research
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-Addresses the specific issues the business needs
-Up to date
-Can help people understand consumer psychology
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-Expensive, costing thousands to do properly
-Risk of bias from interviewer
-May need to compare with other information
What is secondary research
uses pre-existing data that has been gathered for another purpose
What are advantages and disadvantages of secondary research
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-Often free
-Provides a good market overview
-usually reliable research
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-Info may be out of date
-not tailored info
-can be expensive to buy published research
Primary research sources
-Surveys
-Retailer research
-Observation
-Group or individual discussions
Secondary research sources
-The internet
-Trade press
-Government Stats
-Past figures
What is quantitative data
Numerical data which is factual usually to be representative of the whole market
