1.2 Flashcards
definition of customer needs?
In business terms a need is a problem which customers could solve with the purchase of a product or service.
What might a lot of competition mean for prices?
The more competition means firms may lower their prices to gain customers and increase market share. This leads to an increase in sales and revenue.
Examples of customer experience?
next day delivery, personalisation of products, self service, location of the business.
What is market segmentation?
Market segmentation is a way of separating buyers into groups or segments, based on behavior, or specific factors in order to better understand the market.
Identify key features of competators
They can spot a gap in the market and can focus of features to make their products different to competators.
What is market research?
Market research is the search for, and analysis of information relevant to the identification and solution of consumer problems.
What do businesses use market research for?
More sales
to understand
price range
reduce risk
reduce money loss
to gain profit
adapt customer needs
establish a range of products
What impact do you think being in a competitive market has on a business?
-A lot of pressure
-Create unique products
-More choice for consumers
-Lower prices
Definition of competitive environment?
A competitive environment is the dynamic external system in which a business competes and functions. The more sellers of a similar product or service - the more competitive the environment in which a business competes.
what is an example of a competitive market?
Fast food restaurants
What 3 things may happen if a business decides to compete on price?
- Lower prices may mean lower profits
2.This will mean the business will have to lower cost
3.This may also mean that it starts a price war with other competitors
what 3 things may happen if a business decides to compete on quality?
- If the business decides to improve the quality of its products it will cost more
- If costs increase then this will mean that profits will be lower
- This is risky as customers may care more about price and quality
What were the 3 examples of using location as a way to compete in a competitive environment?
- Having the most convenient location for customers
- Being able to offer free parking
- Location out of town so the business can have a larger store.
Why do retailers try and give good customer service?
Retailers that provide customers with helpful and friendly service will win their loyalty leading to repeat custom and recommendations to friends.
What is the Marks and Spencer’s good will policy?
They are happy to refund you for your items you don’t want. The policy is in addition to your legal rights as they are not legally required to refund your items you don’t want.
