1.1 - Meeting Customer Needs Flashcards
Market research
systematically gathering data from consumers which can be used to influence business decisions.
Marketing research helps…
businesses to identify products and services they can develop in response to customer needs.
Mass market
Products are aimed at broad market segments.
Niche market
Products are aimed at a subset of the larger market. e.g. gluten free products.
High average cost due to small scale production - don’t benefit from economies of scale.
Market segment
Groups of consumers who share similar characteristics.
Sales volume
The number of products sold.
Sales revenue
Price x Quantity sold.
Market share
the proportion of total sales of a product/service compared to the market as a whole.
Market share calculation
(Sales of a business/total sales in the market) x100
Branding
A name, image or logo helping a product stand out from its competitiors.
Helps product differentiation.
Adds value to product.
Dynamic market
a market that is subject to rapid or continuous change.
e.g. changing technology in the phone market.
Competition
Two or more businesses providing goods to the same target market.
Direct competition
When at least two businesses are targeting customers with the same product.
Indirect competition
Firms sell different products but compete for the customers disposable income.
E.g. cinema and theatre companies.
Risk
The potential threat to business success.
