Business Studies - Marketing Flashcards
What are customer needs?
Customer needs are the things that people can’t live without. E.g. water, milk and eggs
What are customers’ wants
Customer wants are the things that people desire to have but is not a necessity for example: television and jewellery
Market Segmentation
Market Segmentation is the process of dividing potential customers into different groups based on characteristic such as age, gender, income and much more.
Choosing promotion
Segmenting a market can give business ideas about how best to promote their products. For example advertising in a newspaper isn’t the most effective way to target teenage girls but a teenage magazine might be.
Market mapping
Market mapping is a process to identify a gap in the market and looking at what competitors offer.
Market Research
Market Research is a process of collecting and processing information about the market that a business operates in.
Market Research gathers infomation on demand.
Market research into customers’ demands is important for business success. Insights into customers wants and needs can help a business to improve a product, spot market opportunities and potential threats from new technology.
Market research gathers information on competition
Market Research into competitors can help a business to understand the major threats in the market and help them to prepare and deal with the threats.
Market Research gathers information on their Target Market
This will give the company insights on to the customers wants and needs and how they are changing overtime
What is Primary market Research?
Primary market research is research that is done by a firm for it’s own use. A business can tailor primary market research to their own exact needs. For example a girm may use questionaires, surverys or interviews to carry out primary research.
What is Secondary Market Research?
Secondary market research happens when firms collect information that has been peformed by other organisations. This is particularly useful to gain information about an entire market and is often cheap.
Place
This is where a Business sells their product as different customers shop in different ways.
Product
The product that the compmay decides to sell will suit the needs of a specific target market.
Price
The price that a business decides to fharge for a product affects: who they need to promote to, the target market and therefore the optimal place to sell it, the product needs to change to suit the needs of the customers
Promotion
Promotion constantly changes and firms increasingly use social media and search engines to promote their products, this affects the price, place and product.
They are 4 key factos that influence a firms decisions, which are?
Costs, Product life cycle, Nature of the product and the Degree of competition
How does cost influence a firms’ pricing decisions?
As firms usually aim to make a profit. A firms’ price and costs determine how much profit the firm will make.
How does product life cycle influence a firms’ pricing decisions?
Where the product is in the product life cycle determines the price the firm charge. When a product is first launched a firm may charge a high to take advantage of exclusivity.
How does the nature of product influence a firm’s
There are two key factors that affect this: Whether the products is luxury or not will affect how much a business charges.
Whether the product is hard to differentiate from competitors affects how much a business can charge, if it’s similar the business will usually charge a price similar to competitors.
How does the Degree of competition influence a firms’ pricing decisions.
The Degree of competition affects the businesses pricing methods, as the more competition there is, the more options the customer has. If there are many similar products to yours, you may attract the customer by charging a lower price.
