1.1 - meeting customer needs

Question 1

What are the 4 Ps of markets?

Answer 1

Product
Promotion
Price
Place

Question 1

What is sales volume?

Answer 1

The number of items sold

Question 2

What is sales value?

Answer 2

The financial worth of all the items sold

Question 3

What is market share?

Answer 3

Proportion/percentage of total sales of a product or service achieved by a specific brand

Question 4

What is the formula for market share?

Answer 4

Market share = ( brand_sales / total_sales ) * 100

Question 5

What is a mass market?

Answer 5

A product that is aimed at everyone
Example: McDonald’s

Question 6

What are the advantages of a mass market?

Answer 6

• High brand awareness
• Low production costs
• Large customer base

Question 7

What are the disadvantages of a mass market?

Answer 7

• High, fixed capital cost
• Competition
• Hard to add unique value

Question 8

What is a niche market?

Answer 8

Products aimed at a very specific group of people

Question 9

Advantages of a niche market?

Answer 9

• Can sell for a higher price
• Dedicated customer base
• Less competition
• Easier to react to changes

Question 10

Disadvantages of a niche market?

Answer 10

• Smaller customer base
• More expensive to produce

Question 11

What is branding?

Answer 11

The process of differenciating a product from the name/sign/symbol/design or slogan

Question 12

What makes building a brand hard?

Answer 12

It is time consuming and very expensive, it also relies on the customer’s constant exposure to the firm’s product.

Question 13

What are the benefits of branding?

Answer 13

• High brand recognition
• Increased demand
• Increased price
• Reduced competition
• Protection against recessions

Question 14

What are dynamic markets?

Answer 14

Markets that are subject to continual and rapid change.

Question 15

How do you adapt to change?

Answer 15

• React to trends
• React to legislation
• Multi-skilled staff
• Market research
• Investment into R&D
• Develop a niche
• Continuous improvement

Question 16

How does competition effect customers?

Answer 16

• Competitive prices
• More choice

Question 17

What is good about online retailing?

Answer 17

• 24/7 service
• Larger target market
• Convenience
• Lower O/H costs, no shop rent
• Easier to gather personal info
• Afford greater flexibility
• Global movement
• Easy to adjust prices for inflation

Question 18

What is product orientation?

Answer 18

Focus on the products, not the consumers. Develop wants for the consumers

Question 19

What is market orientation?

Answer 19

A focus on the market, respond to customer needs and wants

Question 20

What are the aims of market research?

Answer 20

• Identify and anticipate needs and wants
• Quantify likely demand
• Provide insight into consumer behaviour

Question 21

What is market research?

Answer 21

Gathering, presenting and analysing data

Question 22

What is primary research?

Answer 22

Information that did not exist before the company started it.

Question 23

Top methods of primary research

Answer 23

• Questionnaires
• Telephone interviews
• Personal interviews
• Focus groups

Question 24

What is secondary reseaerch?

Answer 24

Collecting data that was already available before the company started research.

Question 25

Advantages of Primary Research

Answer 25

- More accurate - Controlled environment

Question 26

Disadvantages of Primary Research

Answer 26

- Expensive - Time consuming

Question 27

Advantages of Secondary Research

Answer 27

- Quick to complete - Cheaper

Question 28

Disadvantages of Secondary Research

Answer 28

- Data may be inaccurate - May find patterns in the data that do not exist

Question 29

What are the two types of secondary data?

Answer 29

- Internal Data - External Data

Question 30

Internal data comes from?

Answer 30

Internal documents (inside the business) or previous studies conducted by the business

Question 31

External data comes from?

Answer 31

Outside the business, individuals or organisations that have collected data for their own reasons (repurposed)

Question 32

What is the use of IT resources for?

Answer 32

Using the internet to gather data outside of the business, link to secondary research

Question 33

What does human behaviour do to research?

Answer 33

We may not be fully honest to be kinder, human nature

Question 34

What is sampling and bias?

Answer 34

Gathering data from a group of respondents that may not reflect the general public

Question 35

What is sampling and bias known as?

Answer 35

Sampling discrepancy

Question 36

What is market segmentation?

Answer 36

Dividing the market up and grouping consumers with similar needs

Question 37

What is demographic segmentation?

Answer 37

Changes through age, gender, income, ethnicity

Question 38

What is geographic segmentation?

Answer 38

Region, country

Question 39

What is psychographic segmentation?

Answer 39

Attitudes, opinions and lifestyles

Question 40

What is behavioral segmentation?

Answer 40

Usage rate and loyalty

Question 41

What are the benefits of segmentation?

Answer 41

- Stop wasting money - Extend into new markets - Change price to meet the income - Meet customers needs better - Increase sales, due to fitting customers desires - Adapting marketing pricing for areas or people

Question 42

What are the disadvantages of market segmentation?

Answer 42

- Costs a lot - Hard to complete and not always accurate - May lose out on potential sales

Question 43

What is market positioning?

Answer 43

Where your product or brand stands in relations to the products of other businesses.

Question 44

Example of repositioning

Answer 44

Lucosade, changing from a health drink to a fitness drink

Question 45

What is risk?

Answer 45

Where the owners take actions that have unknown outcomes

Question 46

What is uncertainty?

Answer 46

External issues that could influence the business

Question 47

Examples of uncertainty?

Answer 47

- Economic changes - Social changes - Labor growth - Supply chain issues - Natural disasters - War