3.1 Marketing, competition and the customer Flashcards

1
Q

What are the roles of marketing?

A

identifying customer needs satisfying customer needs maintaining customer loyalty, building customer relationships

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2
Q

Why do customer/consumer spending patterns change?

A

price of competitor’s product price of products changes in consumer income changes in population size and structure changes in trends spending on advertising and other promotional activities

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3
Q

What is ‘customer loyalty’?

A

when customer keeps buying the same brand no matter what the price

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4
Q

Why do some markets become more competitive?

A

legal controls prevent individual firm from dominating market deregulation - removal of government controls from industry e-commerce and social networks

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5
Q

How do businesses respond to changing spending patterns and increase competition?

A

Develop their products Improve efficiency Increase promotion Look for new markets

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6
Q

benefits + limitations of niche marketing?

A

+ less competition + customers willing to pay large sum of money - luxury goods go out of favour during time of recession/economic crisis - large companies see success, copy/sell for cheaper

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7
Q

What is ‘mass marketing’?

A

selling the same product to the whole market

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8
Q

benefits + limitations of mass marketing?

A

+ potential for high sales and profits + products don’t go out of favour during time of recession - increased competition - people sensitive about prices, not willing to pay large sum

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9
Q

What is ‘market segmentation’?

A

dividing whole market into segments by consumer characteristics + targeting different products to each segment

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10
Q

What are the two types of segmentation?

A

geographic segmentation: dividing consumers in the market by geographic area demographic segmentation: dividing consumers in the market by factors

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11
Q

Benefits of market segmentation?

A

Goods + services designed to meet specific needs of consumers → increases sales Small firms (not be able to compete in whole market) able to operate in one or two segments - e.g. a niche market Marketing strategies can be better targeted at each segment May be possible to charge higher prices

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12
Q

What are ‘market-orientated businesses’?

A

Products are developed based on consumer demand as identified by market research

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