5.1 Identifying And Understating Customers Flashcards
What must there be in order for a business to sell a product?
Demand
A business can either sell a want/ need product
What is the customer and consumer?
The customer is who buys the product
The consumer is the person who uses the product
Normally this will be the same person
When will you likely see a rise in sales?
When you are doing something better than your competitions
What is meant by a business selecting the right market mix?
A business may choose to focus on certain factors which they know there customers enjoy
Eg appearance, quality…
Why may a business chose to focus on a certain market mix?
So that they can target a specific part of the population. This means that they can then focus there advertising on certain groups of people.
They can focus of improving certain things about there products
It will help them avoid mistakes. If they are producing products with things that people don’t want then people won’t buy it
To help a business be more competitive. Focusing on a certain market mix should cause customers to get more value for there money
What is marketing?
The proses of understanding your customers, selling a good and advertising it and finding a gap in the market
How may a business improve it’s customer understanding?
Suggestion boxes
Questionnaires
Focus groups- groups of people who test/review a product or service
Interviewing customers
Reviewing complaints
What are the advantages of suggestion boxes?
Cheep
You can get valuable feedback
Unsatisfied customers ideas are heard
What are the disadvantages of suggestion boxes?
People may lie
You may get an minority view and change what most people like
What are the advantages of questionnaires?
Cheep
Data is recent
Results can be compared to results from a similar time period
What are the disadvantages of questionnaires?
Customers may lie because of privacy concerned
Customers may become frustrated because they are being bombarded by surveys. This may cause them to rush them or do them wrong
What are the advantages of focus groups?
Relatively cheep
Gathers a lot of usefully info
Customers can relax and give honest options about the product
What are the disadvantages of focus groups?
Maybe hard to persuade people to do it
You may get a minority view and change what most people like
May demotivate employees if they think the business thinks they aren’t producing high quality products
What are the advantages of interviews?
You can ask specific questions
You can look at facial expressions
You can ask why a customer has a certain opinion
What are the disadvantages of interviews?
It may be hard to persuade people to do it
Customers may answer quickly and not give honest answers to finish quickly
Customers may lie
