Bs7- Anticipating Customer Needs

Question 1

Distinguish between impulse and planed purchases

Answer 1

In impulse purchase is there and then in the moment, there is little thought before buying. Where as a planned purchase has had more thought behind it and therefor is more realistic as research has been done before perchance

Question 2

Distinguish between niche and massmarketing

Answer 2

Niche marketing is about targeting specific segment of a market, normally smaller. Where as mass marketing is where a business attempts to reach the entire market with a single product. In mass there are many other similar products in the market.

Question 3

Identify one advantage and one disadvantage of mass marketing strategy

Answer 3

Advantage- there is a massive customer range

Disadvantage- there are a lot of other similar products.

Question 4

Identify one advantage and one disadvantage of a niche marketing strategy

Answer 4

Advantage- can exploit economy’s of scale in that market

Disadvantage- the market can be very small

Question 5

Distinguish between market and product orientated businesses

Answer 5

Market orientated- gets the right product

Customer oriented- gets the product right

Question 6

Identify one advantage and one disadvantage of a market orientated approach

Answer 6

Advantage- it will sell in the market

Disadvantage- it may not be exactly what the customer wants

Question 7

Outline why a product orientated approach could be better long-term strategy

Answer 7

As they are trying to target each of the appropriate markets, it means that in the long term if anything was to go wrong in one market then they still have the product in other markets as security.

Question 8

Explain what is meant by market segmentation

Answer 8

It is when the market is split up into different groups, for example, age, gender, characteristics and jobs.

Question 9

State five types of market segmentation

Answer 9

Age
Gender
Job 
Location 
Religion

Question 10

Describe two benefits of market segmentation to business

Answer 10

It allows the business to easily target the right market.

Allows the business to see where they need to advertise.

Question 11

Describe two drawbacks of market segmentation to business

Answer 11

They need to ensure that they aren’t excluding other customers by taking segmentation too far.
Too much segmentation means that sales are lost