1.1 - Meeting Customers Needs

Question 1

Define a market [1]

Ref - 1.1.1 (The Market)

Answer 1

Any place where buyers and sellers are able to meet. [1]

Question 2

What is the main aim of marketing? [1]

Ref - 1.1.1 (The Market)

Answer 2

Identify and satisfy consumer wants and needs. [1]

Question 3

What is the difference between a consumers’ wants and needs? [2]

Ref - 1.1.1 (The Market)

Answer 3

(Needs) - Essentials to the consumer e.g. water. [1]
(Wants) - The consumers desires which are non-essentials e.g. cars. [1]

Question 4

What is a mass market? [1]

What are market segments? [1]

Ref - 1.1.1 (The Market)

Answer 4

A market where products are aimed at broad market segments. [1]

Groups of consumers which share similiar characteristics. [1]

Question 5

What is a niche market? [1]

Ref - 1.1.1 (The Market)

Answer 5

A market where products are aimed at a subset of the larger market. [1]

Question 6

How does mass marketing occur in a market? [2]

Ref - 1.1.1 (The Market)

Answer 6

• Businesses sell their products to most of the available market. [1]
• Production occurs on a large scale. [1]

Question 7

How does niche marketing occur in a market? [2]

Ref - 1.1.1 (The Market)

Answer 7

• Businesses sell their products to a smaller group of people within a market. [1]
• Production occurs on a small scale. [1]

Question 8

Give 3 characteristics of mass markets. [3]

Ref - 1.1.1 (The Market)

Answer 8

• Products are less unique as product is aimed at a broad market. [1]
• Low costs due to large scale production. [1]
• Low prices cause great affordability + higher sales volumes. [1]

Question 9

Give 3 characteristics of niche markets. [3]

Ref - 1.1.1 (The Market)

Answer 9

• Unique products as it is aimed at a smaller market. [1]
• High costs due to small scale production. [1]
• High prices causes less affordability + less sale volume. [1]

Question 10

How can the size of the market be measured? [2]

Ref - 1.1.1 (The Market)

Answer 10

• Sales Volume [1]
• Sales Value [1]

Question 11

How do you calculate sales volume and sales value? [2]

Ref - 1.1.1 (The Market)

Answer 11

Sales volume - Number of products sold. [1]
Sales Value - (Price) x (Quantity sold) [1]

Question 12

What is meant by the market share? [1]

Ref - 1.1.1 (The Market)

Answer 12

• Proportion of the total sales that a business earns compared to the whole market. [1]

Question 13

How is market share calculated? [1]

Ref - 1.1.1 (The Market)

Answer 13

Sales of a business
/ Total market sales [1]
(x100) [1]

Question 14

What is a brand? [1]

What does a brand achieve? [1]

Ref - 1.1.1 (The Market)

Answer 14

• An image/logo which helps a product/service stand out against competitors. (e.g. Nike) [1]
• Product Differentiation. [1]

Question 15

Ref - 1.1.1 (The Market)