1.1- meeting customer needs Flashcards
What are marketing objectives?
The targets the marketing department must achieve
eg. increasing sales by 15% within 12 months
What are marketing strategies?
The medium-to-long term plan for meeting the marketing objectives
What is marketing segmentation?
Dividing a market up by customer stereotypes
What is the marketing process?
Set marketing objectives -> identify market opportunity -> decide on a strategy -> devise a coherent marketing mix
What are the main aims of market segmentation?
-identify target market
-focus your market research
-focus your advertising
What is a mass market?
the market that is aimed at the general population
What is a niche market?
a subset of the main market and addresses a specialist want or need
What are the pros and cons of mass markets?
Pros:
-large scale production means EOS and lower average unit costs
-straightforward as everyone is targetted
-larger volumes of sales
Cons:
-lots of competition
-similar products need to be differentiated which can be expensive
-high volume production not flexible to demand changes
What are the pros and cons of niche markets?
Pros:
-charge premium prices
-easier to target customers
-less competition
Cons:
-risky as demand may not be constant
-higher unit costs
What is market share?
Shows the size of a company in relation to its market and its competitors
How can market share be measured?
-Volume of sales
-Physical quantity of sales sold
-Total amount spent by customers
What is the formula for market size?
(sales of x/total sales in whole market) X100
How can competitive markets benefit consumers?
-Makes businesses more efficient
-Means the business needs to listen to wants and needs
-Business will be less wasteful
-Business will produce a good qualitu product/service
What is a business risk?
When the potential outcomes of a decision are known
What is business uncertainty?
None of the outcomes are known in advance
What is product orientation?
The product is the most important factor when providing products for a market
What is market orientation?
The business finds out the wants and needs of the customer and responds to them
What should businesses research?
-Customer wants and needs
-Gap in the market
-Suppliers
-Materials
-What competitors sell
What is primary research?
Found by the researcher
What is secondary research?
Found by someone else
What are the pros and cons of primary research?
Pros:
-Specific and personalised
-In date information
-Reliable
Cons:
-Time consuming
-Expensive
What are the pros and cons of secondary research?
Pros:
-Quicker
-Cheaper
-Specialist information
Cons:
-Could be out of date
-Not specific
What are primary research methods?
-Questionnaires
-Interviews
-Focus groups
-Consumer panels
What are secondary research methods?
-Annual reports
-Government sources
-News
-Specialist publications
