Ch 10 - marketing, competition, consumer

Question 1

What is the role of marketing

Answer 1

Identifying the customers’ wants
Satisfying customer wants
Maintaining customer loyalty
Increase market share/image of the business
Build customer relationships
Anticipating changes in customer needs

NNN RL

Question 2

Successful marketing could lead to

Answer 2

Increased awareness
Increased/maintained market share
Increase in profit and revenue
Improve/maintain the image of the brand

Question 3

Advantages of mass marketing

Answer 3

High sales
Risks can be diffused since the business sells serval variations of products, so if one product slows down/fails the business won’t be heavily impacted

Question 4

Disadvantages of mass marketing

Answer 4

High costs of advertising
Standardized products may not meet all the needs of the customer which could lead to loss of sales (could drive customers to competitors)

Question 5

Advantages of niche marketing

Answer 5

Needs of customers are more closely focused on and met.
Better customer loyalty and customer relationships
less competition

Question 6

Disadvantages of nice marketing

Answer 6

Relatively small - limited sales
Less room for growth and profitability
Product risk - usually business in a niche market specialize in one product, if that product is no longer demanded then the entire business is at risk.
Need more market research

Question 7

Ways to segment a market

Answer 7

Income
Age
Gender
Interests/preferences
Region/location

Question 8

How can segmenting a market help the business

Answer 8

Makes marketing more cost effective. Only advertising to your target audience/market segment

Leads to higher sales and profits because of the cost-effective marketing

Question 9

How can segmenting a market help the business

Answer 9

sell more products - making different brands of a product and then aiming each brand at a different
market segment

business can sometimes identify a segment whose needs are not being met meaning there is a gap in the market

Cost-effective advertising - higher sales, higher profits, minimising advertisement costs

Question 10

Factors that go into deciding how to segment a market and enter

Answer 10

» ‘size’ of each potential segment in terms of consumers and likely sales

» company image and brand image

» cost of entering each segment