1.3 - marketing mix and strategy Flashcards
What are the characteristics of mass markets and niche markets?
Mass markets cater to a broad audience, while niche markets target specific segments with specialized needs.
What is the difference between market size and market share?
Market size refers to the total potential sales in a market, while market share indicates the portion of that market controlled by a particular business.
How do brands influence a business’s position within its market?
Brands can enhance recognition, customer loyalty, and perceived value, thus affecting market position.
What are the advantages of online retailing for consumers?
Convenience, wider selection, and often lower prices.
What are the disadvantages of online retailing for businesses?
Increased competition, lower profit margins, and challenges in customer service.
How do dynamic markets differ from static markets?
Dynamic markets experience frequent changes due to shifts in consumer tastes and technology, while static markets remain relatively stable.
What is direct competition?
Direct competition occurs when businesses produce similar products that appeal to the same group of consumers.
What is indirect competition?
Indirect competition occurs when different businesses sell products that are not directly similar but compete for the same consumer expenditure.
What is the difference between risk and uncertainty in business?
Risk involves known probabilities of outcomes, while uncertainty arises from unpredictable external factors.
Fill in the blank: Primary market research data is obtained _______.
first hand by the business.
What are some examples of primary market research methods?
- Surveys
- Observations
- Interviews
- Test marketing
- Focus groups/consumer panels
What is quantitative data?
Quantitative data is numerical and can be analysed statistically.
What is the purpose of market segmentation?
To divide a market into groups with distinctive customer preferences.
What are common groupings used in market segmentation?
- Age
- Gender
- Income
- Hobbies/interests
- Location
- Ethnic origin/culture
- Occupation
- Lifestyle
What is market mapping?
Market mapping evaluates business ideas by plotting features of a market or product on a diagram.
What are some ways companies can gain a competitive advantage?
- Price
- Adding value
- Innovation
- Reliability
- Quality
- Reputation/image
- Advertising/marketing
- Convenience
- Customer service
What is product differentiation?
Distinguishing a product/service from competitors through unique features or marketing.
What is added value?
The difference between the price charged and the total cost of inputs required to create a product/service.
Fill in the blank: Product orientation prioritizes a product’s _______ rather than customer preferences.
design quality or performance.
What are limitations of market research?
Sample size and bias can affect the accuracy and reliability of findings.
How can ICT support market research?
- Websites
- Social networking
- Databases
What is the significance of understanding consumer behaviour in market research?
It helps identify and anticipate customer needs and wants, reducing risk.
What is an example of a product that illustrates market orientation?
Audi cars.
What is an example of a product that illustrates product orientation?
Apple iPhones.
What does the term ‘USP’ stand for?
Unique Selling Point.
