1.1 Meeting Customers Needs Flashcards
What is a niche market?
A market which appeals to a smaller market segment.
Traits of a niche market?
- lower scale production
- Higher prices
- Smaller audience
- More unique products
What is a mass market?
A market which appeals to a large market segment.
Traits of a mass market?
- large scale production
- lower prices
- Bigger audience
- More competition
- Generic products
What is a dynamic market?
A market subject to rapid change, for example the mobile phone market.
What is online retailing?
When a product is sold online.
Online retailing’s pros and cons?
Pros:
- 24 hours a day selling
- Larger possible audience
- Lower fixed costs compared to physical
- Can collect data
Cons:
- High price to start up and maintenance
- High levels of competition
- Consumers may be unsatisfied with customer service.
- May experience credit card fraud
What is branding?
Branding is an image, name or logo protected by law which helps differentiate a business from its competition and adds value to a businesses products.
How can competition affect a market?
- Cause overall lower prices
- Produce better quality products
- Produce better customer services
What is market research?
When business gather data on consumers to identify their wants and needs.
What is primary market research?
Research conducted by a business first hand.
What are the methods of primary research?
- Surveys
- Observations
- Interviews
- Market testing
- Focus groups
Primary research pros and cons?
Pros:
-Tailored to business
- Up to date
- In depth
Cons:
- Expensive and time consuming
- Bias in interviewer may effect results outcome
- Sample size may be too small
What is secondary research?
When a business gather previously conducted information by 3rd party resources on consumers.
What is the purposes of market research?
- Reduce risk
-Understand customers behavior
-Identify gaps in the market
-Identify competitors
-Identify demand levels
What is quantitative data?
Data based on numeric.
What is qualitative data?
Data based on thought and opinions.
What is market segmentation?
The process of dividing a market into smaller subsections with consumers of different characteristics. This can include: religion, sex, lifestyle, sexuality ext.
Example: The fashion industry is not simply one large conglomerate you have many sub fashions such as: Basics, Goth, Office attire ext.
Market segmentation, Pros and cons?
Pros:
- Products are marketing can specifically tailor to different types of groups wants and needs
- less expensive and wasteful marketing as targeting smaller audience
- May increase customer loyalty
Cons:
- Not everyone within segment may behave similarly
- May be difficult and expensive to identify
- Segment may be too small and therefore unprofitable
What is market positioning?
The process of deciding what a product quality, price, branding and customer perception will be.
What is market mapping?
The process of placing competitors onto a graph of quality and price or any other two criteria.
Example:
https://cdn.savemyexams.com/cdn-cgi/image/f=auto,width=1920,w=640/uploads/2023/03/1-1-3-market-positioning-and-market-mapping-1.png
What does a full market map suggest?
The market is saturated.
What does a space on a market map suggest?
A gap in the market. However this may stand untrue in obvious areas no one would buy into such as high price low quality.
Market map, pros and cons?
Pros:
- Can show gaps in market
- Can show if market is saturated
- Comparisons between product and rivals products
- Visualization
Cons:
- Not all market gaps are profitable
- Primary research required to construct one maybe expensive
- Potentially too simplistic
- Time specific
What is a competitive advantage?
Any positive attribute a company or its products and services has over its competitors.
Examples include: delivery times, quality, features, design, price, reputation, ethics and reliability.
How can value be added to products and services?
-Branding
-Design
-Features
-Quality
-Reputation
-Association
-Convenience
-Customization
-Customer service
