1.1 meeting customer needs Mattu

Question 1

what is a market?

Answer 1

Refers to all the buyers and sellers that trade a particular type of product in a particular place. This could be face to face in a physical store, online or virtual

Question 2

define mass market

Answer 2

where a business sells into the largest part of the market, similar products offered by competitors, the product had a wide appeal. Customers needs are more general and less “specific”

Question 3

define a niche market

Answer 3

business targets a smaller segment of a larger market, customers have specific needs. Adresses a need for a product/service that is not being adressed by other providers.

Question 4

advantages of mass markets

Answer 4

more sales revenue by selling to wider range of retailers, mass production - benefit from economies of scale, standardised products (less risky), high brand awareness

Question 5

disadvantages of mass markets

Answer 5

markets can be saturated, impact future growth, competitive pricing/low prices leads to lower profit margins per product, mass production required lots of capital, consumers less brand loyal

Question 6

advantages of niche markets

Answer 6

can adapt quickly to changes, charge higher prices due to higher differentiation, customers brand loyal

Question 7

disadvantages of niche markets

Answer 7

cannot benefit from economies of scale resulting in higher unit costs, not enough customers, less scope for growth, vulnerable to fall in demand