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A-Level Business Studies Edexcel > 1.1 Meeting Customers Needs > Flashcards

1.1 Meeting Customers Needs Flashcards

1
Q

What is a niche market?

A

A market which appeals to a smaller market segment.

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2
Q

Traits of a niche market?

A
  • lower scale production
  • Higher prices
  • Smaller audience
  • More unique products
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3
Q

What is a mass market?

A

A market which appeals to a large market segment.

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4
Q

Traits of a mass market?

A
  • large scale production
  • lower prices
  • Bigger audience
  • More competition
  • Generic products
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5
Q

What is a dynamic market?

A

A market subject to rapid change, for example the mobile phone market.

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6
Q

What is online retailing?

A

When a product is sold online.

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7
Q

Online retailing’s pros and cons?

A

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

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8
Q

What is branding?

A

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.

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9
Q

How can competition affect a market?

A
  • Cause overall lower prices
  • Produce better quality products
  • Produce better customer services
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10
Q

What is market research?

A

When business gather data on consumers to identify their wants and needs.

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11
Q

What is primary market research?

A

Research conducted by a business first hand.

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12
Q

What are the methods of primary research?

A
  • Surveys
  • Observations
  • Interviews
  • Market testing
  • Focus groups
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13
Q

Primary research pros and cons?

A

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
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14
Q

What is secondary research?

A

When a business gather previously conducted information by 3rd party resources on consumers.

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15
Q

What is the purposes of market research?

A
  • Reduce risk

-Understand customers behavior

-Identify gaps in the market

-Identify competitors

-Identify demand levels

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16
Q

What is quantitative data?

A

Data based on numeric.

17
Q

What is qualitative data?

A

Data based on thought and opinions.

18
Q

What is market segmentation?

A

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.

19
Q

Market segmentation, Pros and cons?

A

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

20
Q

What is market positioning?

A

The process of deciding what a product quality, price, branding and customer perception will be.

21
Q

What is market mapping?

A

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

22
Q

What does a full market map suggest?

A

The market is saturated.

23
Q

What does a space on a market map suggest?

A

A gap in the market. However this may stand untrue in obvious areas no one would buy into such as high price low quality.

24
Q

Market map, pros and cons?

A

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

25
Q

What is a competitive advantage?

A

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.

26
Q

How can value be added to products and services?

A

-Branding
-Design
-Features
-Quality
-Reputation
-Association
-Convenience
-Customization
-Customer service

A-Level Business Studies Edexcel (3 decks)

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