Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A Level Business Pearson > 1.1.1 -1.1.3 Meeting consumer needs > Flashcards

1.1.1 -1.1.3 Meeting consumer needs Flashcards

1
Q

what are three types of markets?

A

Mass
Niche
Dynamic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

define market

A

a set of arrangements that allow buyers and sellers to communicate and trade in a particular range of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

define brand name

A

a name, term etc that allows consumers to identify the goods and services of a business & to differentiate them from those of competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

define e-commerce

A

conducting business transactions online

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

define online retailing

A

the retailing of goods online

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

define marketing

A

a management process involved in identifying, acticipating and satisfying consumer requirements profitably

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

define market share

A

the proportion of total sales in a particular market for which one or more businesses are responsible
-exp as percentage, calc through volume or sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

define mass market

A

a very large market in which products with mass appeal are targeted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

define niche market

A

a smaller market, usually within a large market or industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are the products in a mass market like?

A

aimed at larger group
wide appeal to a variety of people
standard

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are the products in a niche market like?

A

aimed at a specific group
specialised product to meet particular requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

give examples of mass market products

A

Volkswagen cars
Cadbury choclate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

give examples of niche market products

A

Moo-free a diary free choclate
Rolls Royce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are some features of a mass market?

A

more consumers
lots of competitors -> harder to differentiate
higher sales volume -> use EoS to reduce unit price
can sell at a cheaper price
-to achieve need large amounts of capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are some features of niche market

A

more risky
higher prices
less consumers
if changge in market -> directly affects through a reduction in sales -> struggle to survive
less competition -> easier to differentiate and charge higher

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is market size?

A

diff to market share
-total value of shares in a market over a time period
-can be measured through total numers of consumers in the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is market share?

A

the proportion of the total market the business holds
cacl through sales in a certain time period by total sales in the total market
-mass markets -> larger market size

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

how do firms in a mass market make their brand distinctive?

A

Strong branding - clear and obvious name, logo which is instantly recognisable -> help differentiate from comp.-> encourages consumers to buy -> affects market share
-focus heavily on branding due to competitive environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are dynamic markets?

A

markets which are always changing, they change and evolve rapidly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

how can dynamic markets change?

A

consumer preferences change - social trends
innovation - new products emerge, old ones disappear
ways in which consumers shop e.g. online shopping
competitors enter/leave market
changes in legislation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

how would businesses in dynamic markets keep up?

A

by adapting to changes by consistently conducting market research
-> higher costs as need to catch onto trends to survive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

how has online retailing changed how markets operate?

A

growth has negative impact on traditional retailers as they have been forced to shut down
-as online shops are easily accessed, open 24/7 and comparison sites exist so consumers change get the best price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what are some benefits to online retailing?

A

lower business costs -> no need for physical shop or same level of staff
open 24/7 so customers can shop anytime and from anywhere
compare prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what are some disadvantages to online retailing?

A

more competition due to access to comparison sites
some consumers prefer to see the product before buying -> improve through good customer service like online chat services
need to protect personal details from cyber criminals -> if site is insecure -> affect reputation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what is direct competition?

A

when two or more businesses sell similar products that appeal to the same group of customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what is indirect competition?

A

when two or more businesses sell products that are different but they are competing for the same customers
e.g. indian takeaway competes with italian takeaway

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

how can the level of competition affect how a firm operates?

A

inf decisions on marketing mix
-product -> need to be of good quality and be distinctive from competitors through innovation
-promotion -> need informational and persuading campaigns and advertising -> higher marketing spend -> focus on branding
-pricing -> use a competitive pricing strategy, penetration pricing to tempt customers away from comp
-place -> need to be convenient for customers to buy, maybe open an online shop

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what is a risk?

A

when taking a risk, the probabilities of the different outcomes are known
-minimise negative outcomes
-controllable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is an uncertainty?

A

unexpected events
-external events like covid which are difficult to predict when or if they will happen -> the outcome
-often affect whole market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is a franchise?

A

an agreement that allows a business to use the idea, name and reputation of an established business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

how does comp affect the nature of ownership?

A

new firms may prefer being a franchise -> easier to succeed
-new/small firms struggle to survive in mass markets due to lack of budget needed to attract attention & gain market share -> more investment -> change to limited
-established comp need to change the nature of their ownership to gain more market share e.g. ltd -> plc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

define consumer panels

A

groups of customers are asked for feedback about products over a period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

define database

A

an organised collection of data stored electronically with instant access, searching and sorting facilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

define focus groups

A

where a number of consumers are invited to attend a discussion about a product led by market researchers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

define market orientation

A

an approach to business which places the needs of consumers at the centre of decision making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

define market research

A

the collection, presentation and analysis of information relating to the marketing and consumption of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

define market segments

A

part of a whole market where a particular customer group has similar characteristics

38
Q

define primary research

A

the gathering of new info which doesn’t already exist

39
Q

define product orientation

A

an approach to business which places the emphasis upon the production process and the product itself

40
Q

define qualitative research

A

the collection of data about attitudes, beliefs and intentions

41
Q

define quantitive research

A

the collection of data that can be quantified

42
Q

define respondent

A

a person or organisation that answers questions in a survey

43
Q

define sample

A

a small group of ppl who must represent a proportion of a total market when carrying out market research

44
Q

define secondary research

A

the collection of data that is already in existence

45
Q

define socio-economic groups

A

division of ppl according to social class

46
Q

define added value

A

the extra features which may be offered by a business when selling a product such as high quality that helps to exceed customers expectation

47
Q

define competitive advantage

A

an advantage that enables a business to perform better than its rivals in the market

48
Q

define market maps

A

two dimensional diagram that shows two of the attributes or charachteristics of a brand and those of rival brands in the market

49
Q

define market positioning

A

the view consumers have about the quality, value for money and image of a product in relation to those of competitors

50
Q

define product differentiation

A

an attempt by a business to distinguish its product from those of competitors

51
Q

define reposition

A

change the view consumers have about a product by altering some of its characteristics

52
Q

define USP

A

the feature of a product that clearly distinguishes it from its rivals

53
Q

what does a business which is product orientated focus on in production and marketing decisions?

A

design
quality
performance
whether its what the consumers actually want

54
Q

what do product orientated b use to develop new products?

A

advances in technology to make products they think that customers will like
create new and innovative products and put them on market -> persuade consumers to buy them

55
Q

give an ex of a product orientated business?

A

Apple with the iphones

56
Q

what does market orientated b do when making production and marketing decisions?

A

invests a lot in market research to find out consumer wants and needs
tailored products -> higher prices

57
Q

why is market orientation considered a low risk strategy?

A

based on consumer feedback
firms can predict more accurately the levels of demand

58
Q

what does market research include when looking at markets?

A

the competitors
the products of comp
the consumers in the market

59
Q

why is effective market research so important to a business? what info is found

A

find out consumers needs and wants, needs = essentials like food so willing to pay more and wants = non essentials, consumers choose to pay for -> ANTICIPATE TO GET AHEAD
-predict levels of demand for a product -> get correct amount of supply & take action if likely to fail
-learn about how consumers behave in relation to a product and how they use the product
-consumers are willing to pay for a product
-identify comp
-PESTLE

60
Q

overall what does market research help b. do?

A

make informed decisions
helping reduce risks

61
Q

what are some features of quantitative research?

A

numerical stats
closed questions w fixed, predetermined answers
less opinionated
more interpreting to do

62
Q

what are features of qualitative research?

A

opinions of consumers
open questions
-harder to use stats tests with / analyse numerically
-more INFORMATIVE

63
Q

what is a benefit of quantitative research comparted to qualitative?

A

can be statistically analysed
-> makes it quicker and easier

64
Q

is it true that effective MR combines both qualitative and quantitative research?

A

YeS

65
Q

Explain what primary research is?

A

-aka as field research
collect data through questionnaire, surveys, observations, interviews and focus groups
-test marketing, launching a product in one regoin and measure sales & consumer response before launching it
-sampling is done to make predictions about whole market
-needed to find out what consumers think of a new product or advert

66
Q

give advantages of primary research?

A

specific to purpose its needed for
good for niche markets
exclusive to the business who researched it

67
Q

give disadvantages of primary research?

A

labour-intensive
expensive
slow

68
Q

explain what is secondary research?

A

aka desk research
includes info from GOV publications, reliable internet sources like statistica, trade magazines and market reports.
-used to get an initial understanding of a market

69
Q

give advantages of secondary research?

A

easy
faster & cheaper

70
Q

give disadvantages of secondary research?

A

may be unsuitable and have errors/ be out of date

71
Q

Why do samples need to be representative?

A

so it represents the consumer’s of the business and improve the accuracy
Moreacc = lower cost as saves time resources

72
Q

What is a representative sample?

A

a sample with similar proportions of ppl in terms of categories like age, gender and income
Bigger sample = better chance of being representative =smaller margin of error

73
Q

how can the size of the sample be affected?

A

by the budget of the business
Limited = risk of inaccurate info Inc
Unlimited = less risk of inaccurate info Inc
-depends on size, type of market and whether a firm prioritises cost

74
Q

how will a new business be affected from launching in a niche market?

A

its risky
Benefits from accurate research as they can make more accurate representation of consumers needs

75
Q

what conditions would a business prioritise cost over accuracy?

A

when a business launches a product in a competitive market which is similar to products on the market
-needs to spend less due to the already established high demand

76
Q

how can market researchers avoid Bias?

A

Avoid biased questions , q which lead the respondent to give a particular answer
Avoid giving personal opinions when delivering Qs
Be open to recieving any answer

77
Q

what are the two types of Bias?

A

Interviewer Bias - their opinions can influence the iterviewee
Respondent Bias - when their response isn’t their true answer due to thinking their answer will be socially unacceptable

78
Q

How can technology support MR?

A

use of Ict makes it easier, cheaper and quicker
Can gather more info than traditional methods as can get a wider sample
Ex. Are websites, social media & databases

79
Q

how can businesses use websites in MR?

A

use its own website by conducting surveys or analysing activities of ppl using the site
Look at competitor websites to gather info about new products
Read reviews from customers but can be skewed to be more negative as customers more likely to leave reviews after a bad exp ->not representative

80
Q

what is a limit to a business using websites for MR?

A

can give general info and not specific reasons to why their websites is less succesful

81
Q

How cam social networking be used in MR?

A

the use of internet based platforms to make connections;
-connect to customers through Facebook etc
-post content and monitor the responses
- can pay to the social media site to post a survey q about products on consumers feeds
-track current trends

82
Q

What is a limit of businesses using social media as MR?

A

not all consumers use the same sites
Leading to very different results depending on the site used

83
Q

how can databases be used in MR?

A

W own databases -collect abt products & customers and see the preferences based on what they buy - makes cheaper and more effective
Use other dbs - online for a fee, gives info on trends, businesses and consumers in a market = quick & cheap but most data is quantitative

84
Q

what is segmentation?

A

means dividing a market into groups of buyers.
Those In one segment share one or + characteristic

85
Q

How does segmentation help MR?

A

reveals more about the types of consumers in the market
Z
As each segment, has different needs and wants so require a different marketing mix
-allows for targeting of marketing
-identify the segments which needs are met -solve and launch a product for it

86
Q

give examples of how a market can be segmented?

A

demographic e.g. Age, gender, socio economic class
Geographic - e.g. Neighbourhood, City, country, continents, used by multi national companies
Income - luxury products aimed at high income groups
Behavioural - e.g. Amount of use, lifestyle, hobbies & interests

87
Q

what does market mapping do?

A

compares two features of products or brands, shows extremes, which are important to customers e.g. Low price vs high price
Laid as a matrix, the products are positioned according ti where they are judged in between the two extremes

88
Q

What info can a business gain from analysing market maps?

A

on gaps in the market
If there is demand for that product
Its closest competitors - marketing strategy
If sales are declining
Shows how much customers are willing to pay - pricing strategy

89
Q

give limits of analysing market maps?

A

time consuming
Oversimplifies
The positions of products are often a matter of opinion
Can be biased

90
Q

what is an example of a how a business can have CAnd increase sales and profits?

A

Lower Cost
Product innovation
Advertising and marketing
Product differentiation
Reliability and quality
Good customer service
Convenience

91
Q

How do firms gain a CA?

A

by adding value
Inc the difference between costs and the price
Done by inc price or Dec costs

92
Q

given formula for competitive advantage?

A

Added value = price product is sold for - cost of making product

A Level Business Pearson (40 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions