5.1 Identifying and understanding customers Flashcards
What are customer needs?
The desires that a customer hopes to satisfy through the purchase of a product.
What is the marketing mix?
All the activities that influence whether or not a customer buys a product.
What are 3 importance of identifying and satisfying customer needs?
- Value for money
- Sufficient information
- After-sales (post-sales) services
What is value for money?
Prices paid for a product that should be fair when judged against benefits received from consuming that product.
What is sufficient information?
Information about a product so customers can decide if it is suitable to buy.
What is after-sales (post-sales) services?
Knowledge needed to know if a product has repair service or maintenance after the purchase.
Give an example of value for money.
Someone might pay higher for electric cars than petrol cars because it offers benefits of less air pollution.
Give an example of sufficient information.
Anything on Information about a product’s properties will help a customer’s choices.
Eg. Laptop - hardware, software and memory etc.
Tell me about selling popular products and increase sales.
Increasing sales increase businesses profits and help make it more powerful in the market. It can afford to advertise more and to develop new products.
Select the correct marketing mix. What are some questions a customer may ask the business about the product.
- Is the product the right one?
- Does the price represent good value for money?
- Do interested customers know about the product?
- Is the product easily available to customers?
Why should a business avoid costly mistakes?
Can lead to lose of sales and profits especially when customers are misunderstood.
Give some examples of costly mistakes a business could make.
Diesel cars are be coming less popular in the UK. If manufacturers continue to produce these they will be left with unsold vehicles or they will have to reduce prices significantly to sell them. BOTH ACTIONS WILL REDUCE PROFIT.
Products that damage the environment can damage the businesses reputation as the business will have customers that care for the environment.
Producing faulty products may reduce profits as it may lead to the products being repaired or recalled.
Why should a business be competitive?
The business can outperform its rivals and provide better value for money.
Give 4 stages of the Importance of identifying and satisfying customer needs.
- Discover customer needs.
- Provide a good or service that meets those needs.
- Use the correct marketing mix.
- Increase SALESand become more COMPETITIVE.
What does it mean when a firm or business is market-driven?
Focusing on customer needs, rather than building products and then searching for people to buy it.
