1.2 Flashcards
What are the 4 customer needs?
- Price
- Quality
- Choice
- Convenience
What is the importance of identifying consumer needs?
- it can increase sales
- Business survival - not idenhoying these needs has an increased risk of business failure
Why is the market-driven approach important?
It allows the business to:
Avoid costly mistakes
Find the correct marketing mix
Be competitive
What is the purpose of Market research
- identify a gap in the market
- Identify consumer needs / demand
- Identify a target market
- Scope out competition
What are the 2 types of market research?
Qualitative -opinions
Quantitative - facts & statistics
What are 4 ways of primary research?
Surveys
Questionnaires
Focus groups
Observation
What are the 3 ways of secondary research?
Internet
Market reports
Government reports
What is an advantage of using social media for market research?
Cheaper than other methods
Up to date data & info
Larger audience
Track trends
What is market segmentation?
Breaking down the market into sub-groups
What are ways to segment customers?
Location
Demographics
Behaviour
Lifestyle
Income
Age
Gender
How does market segmentation help the business?
Allows business to forget customers by using:
Differentiated products
Special offers
Targeted advertising
What is market mapping?
It is a grid that measures two features of the products in a chosen market
What does market mapping allow a business to do?
Identify a gap in the market
Product differentiation
What is a competitive environment?
When there is a lot of competition in a market selling the same product/service
What are weaknesses / strengths of competitors?
Price -start a price war
Quality -consumers may choose competitors if their quality is superior
Location - benefit from footfall
Product range
Customer service
