1.1.1 Meeting customer needs

Question 1

Define niche market?

Answer 1

small part of overall market focusing on small market segment

Question 2

Define mass market?

Answer 2

very large market with high sales volume

Question 3

Adv to mass market? (3)

Answer 3

1. High sales/revenues

2. Use profits to expand

Question 4

Define a dynamic market?

Answer 4

a market that is constantly changing

Question 5

Name an adaptation that a business could do to survive in their market?

Answer 5

emerge with new technologies to make it possible to create new products or cheaper substitutes

Question 6

4 forces of change in the market?

Answer 6

consumer demand
innovation
govt. intervention
competiton

Question 7

What is product innovation?

Answer 7

occurs when new technologies make it possible to create new products or improve them

Question 8

What is process innovation?

Answer 8

new technologies to improve methods so that costs are reduced

Question 9

Equation for market share?

Answer 9

Sales of business
———————— x 100
Total sales in the market

Question 10

What is market orientation?

Answer 10

when a business identifies and analysing customer needs

Question 11

What is product orientation?

Answer 11

when a business puts its efforts into developing and making products which it believes its customers will want

Question 12

Adv to market orientation?

Answer 12

• increases in sales
• income
• and increases business volume and market share

Question 13

Define market research?

Answer 13

gathering, presenting and analysing information about the marketing and consumption of goods and services