1.1 Meeting Customer needs Flashcards
What are pros of operating in a Niche market
- less competition
- USP
- Premium prices
what are Cons of operating in a Niche market
- Small customer base (limit growth potential)
- difficult to market
what are the Pros of operating in a Mass market
- Econ of Scale
- Large consumer base
what are cons of operating in a Mass market
- High Competition
- Low customer loyalty
pros of operating in dynamic Market
- opportunities to innovate
- potential for High growth
Cons of operating in dynamic markets
- Uncertainty + Risk
- High adaptation costs (continuously invest in R+D)
Ways to adapt to a dynamic market
- be flexible in the way you operate
- carry out market research (understand consumers)
- invest in new tech, people/products
pros of being in a highly competitive market for Business
- incentive to innovate
- competitive pricing
- focus improve efficiencies
Cons of being in a highly competitive market for business
- Lower profit margins
- high marketing costs
pros of being in highly competitive market for Consumers
- lower prices
- better quality and innovation
cons of being in Highly competitive market for consumers
- overwhelming choices
- aggressive marketing
what are the pros of primary market research
- specific to needs of business
- up to date + reliable
- more opinion/Qualitative data
what are the cons of Primary market research
- Time consuming + costly
- difficult to conduct large sample size
pros of Secondary market research
- easily accessible
- fast + less time-consuming
- better for quantitative data
cons of Secondary market research
- some data may be expensive to purchase
- not always up to date and tailored to business needs
pros of being product orientated
- High quality products
- strong brand reputation
cons of being product orientated
-ignoring customer needs
- risk of market failure (no strong demand)
pros of being market orientated
- better customer satisfaction
- increased adaptation to changing trends
cons of being Market orientated
- high research costs
- slower product development (frequent changes)
What are common limitations of market research
Often biased
small sample ruins reliability (anomalies)
very time consuming
what is the value of market segmentation
- differentiate itself from competitors
- develop and build brand
- reach exact customers
- identify precise needs of consumers
pros of using market Maps
- gain better understanding of competition
- gain understanding of customer perceptions
- decide wether to set up (is there a gap)
limitations of using market maps
- can’t just compared with two factors (more complex)
- subjective
- doesn’t always have to be a gap
name different ways a business may add value
- customer service
- better design/features
- stronger branding
- speed of service
- packaging
- customisation
