1.1 - The Market (Market research & Market positioning)

Question 1

what does marketing involve apart from selling?

Answer 1

• identifying needs and wants of customers
• designing these products based off the costumer needs
• informing customers about the product
• charging the right price
• persuading customers to buy the product

Question 2

mass market

Answer 2

A mass market is when goods are sold to a large mass / quantity of people or the product appeals to the majority.

Question 3

niche market

Answer 3

A niche market is when goods or services do not appeal to the majority and are only sought after by a minority.

Question 4

what might be a downside of a niche business

Answer 4

• May not be a large enough customer base so will have to charge at a higher price bracket (so limits the customer base even further if it becomes unaffordable)
• If business becomes popular and demand rises other larger businesses may begin selling similar products or services increasing the businesses competition

Question 5

volume

Answer 5

the physical quantity of products which are produced and sold

Question 6

market share formula

Answer 6

sales of a business / total sales in the market x 100

Question 7

dynamic market

Answer 7

markets are likely to change - e.g grow, shrink, dissapear etc

Question 8

benefits of using e-commerce for a business (5 advantages)

Answer 8

• products available to those from far away / those who do not want to physically shop
• easier to gather personal information from customers to target other products suited to each individual
• selling costs such as staff , rent and other store overheads avoided
• marketing costs lower
• online retailer is open 24/7

Question 9

growth in exisiting or new markets may happen because …

Answer 9

• economic growth ( e.g larger disposable income or or rise in pay wages)
• innovation (e.g technological advances or marketing techniques)
• social change
• changes in legislation (e.g new laws about the environment)
• demographic changes (e.g change in population size or structure - more young or old people)

Question 10

How will a business try and attract new customers?

Answer 10

• Lowering prices
• Making products different to competitors
• Offering better quality
• Use forms of marketing , advertising and promotions
• Offering something extra ( e.g customer service)

Question 11

Product orientation

Answer 11

The business if focused on the production process and the product itself

Question 12

Market orientation

Answer 12

A business which continually identifies, reviews and analyses consumers needs.

Question 13

Advantages a business which is market orientated may have over one which is product orientation

Answer 13

• Respond quicker to changes in the market
• Will be in a stronger position to meet challenge of new competitors entering the market
• More able to anticipate changes in the market
• Have more confidence when launching a new product

Question 14

Methods of primary research

Answer 14

• questionnaires
• Interviews ( personal or telephone)
• focus groups or consumer panels
• Observation
• Test marketing

Question 15

What two ways can you get secondary research?

Answer 15

Internal :
Collecting data from exisiting business documents or other publications.
External:
Secondary data will also be available from sources outside business.

Question 16

Difference between quantitative and qualitative data?

Answer 16

Quantitative :
- Numbers or collection of data that can be measured

Qualitative:
- Words - data of thoughts , attitudes and beliefs

Question 17

Limitations of market research :

Answer 17

• Human behaviour :
  Peoples opinions and trends may change over time and responses given may only be relevant for a specific time period etc.
• Sampling and bias :
  Sampling size may not be representative.