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.
Uncertainty
When outcomes are difficult to predict.
Product orientation
Approach to marketing focusing on the characteristics of the product rather than the needs of the customer.
Market orientation
approach to marketing that focuses on the needs of consumer and uses this to design a product which meets customer needs.
Market research
The objective collection, compilation and analysis of information about a market.
Primary research
Gathering information directly from consumers in the target market.
Surveys and interviews.
Secondary research
The collection, compilation and analysis of data that already exists.
E.g. purchasing market reports.
Market positioning
The process a business goes through when launching a new product or service.
Market mapping
Tool for identifying the position of a product within a market.
Competitive advantage
The features of a business and its products that are perceived as superior to its rival customers.
Product differentiation
An attempt by a business to distinguish its products from those of competitors.
