1.1 Meeting customer needs Flashcards
Mrs Carr
Characteristics of niche markets
- More specialised
- Higher average costs
- Higher prices
Calculating market share
- business sales / total sales of the market x 100
Characteristics of mass markets
- less unique
- Economies of scale
- lower prices
Sales volume
The number of products sold
What is a brand
- a name, logo, image which helps one product or service stand out
Dynamic markets
a market that is always changing
monopoly
a large business that dominates the market
Advantages of online retailing
- More customers as they can access it globally
- Can trade 24/7
- cheaper to run
- can collect data on customers
Disadvantages of online retailing
- High costs to build a website
- high levels of competition
- lack of personal contact/customer service
- items may not fit or be as described
- Credit card details/fraud
how do markets change?
- Changing consumer trends/tastes
- Changing demographic
- Competition
Risk and uncertainty
Risk - Potential threats to the business
Uncertainty - When outcomes are difficult to predict
Product orientation
- focuses on the characteristics of the product
- creating a product first then finding a market
Market orientation
- Focuses on meeting customer needs and uses them to make a product
- consumers are their main priority
Primary research
- Gathering information ion straight from the customer using interviews/surveys
Secondary research
- Collecting data/information that already exists eg. newspapers/ previous journals
Advantages of primary research
- Focused on your business needs
- in-depth information
- more up to date/relevant
Disadvantages of primary research
- Expensive / time consuming
- small sample size
- bias
Advantages of secondary research
- already available
- quicker / cheaper
- suitable for small businesses
Disadvantages of secondary research
- may lack relevance
- may out of date
market segmentation
- process In which a market is divided into submarkets
Advantages of market segmentation
- products can be catered towards specific groups
- Customer needs are met / increased customer loyalty
- less expensive and wasteful than marketing products at everyone
Disadvantages of market segmentation
- difficult to identify a segment
- requires mire market research
- not everyone in the sub market will behave the same
Market mapping
- a tool to identify a gap within a market
Advantages of market mapping
- simple to construct
- identifies a gap In the market
- can compare where your rivals are sitting
Disadvantages of market mapping
- The gap may exists because its not profitable to be there
- requires lots of primary research
- ## to simplistic
Methods of adding value
- marketing/branding
- packaging/design
- customer service
- convenience
- product differentiation
