Chapter 10

Question 1

What is marketing?

Answer 1

Marketing is identifying
customer wants and
satisfying them profitably.

Question 2

What is a customer?

Answer 2

A customer is a person,
business or other
organisation which buys
goods or services from a
business.

Question 3

What is customer loyalty?

Answer 3

Customer loyalty is
when existing customers
continually buy products
from the same business.

Question 4

What is customer relationships?

Answer 4

Customer relationships
is communicating with
customers to encourage
them to become loyal to the
business and its products.

Question 5

What is market share?

Answer 5

Market share is the
percentage of total market
sales held by one brand or
business.

Question 6

What is a consumer?

Answer 6

A consumer buys goods or
services for personal use
not to re-sell.

Question 7

What is a mass market?

Answer 7

When a business sells the same product to all consumers and markets in the same way.

Eg Mc Donald’s

Question 8

What is a niche market?

Answer 8

A niche market is about selling a small customer group. Sometimes with specific needs.

Eg BBC radio 3

Question 9

What is market segmentation?

Answer 9

Market segment is an
identifiable sub-group
of a whole market in
which consumers have
similar characteristics or
 preferences.

Question 10

What is the central role of marketing?

Answer 10

• identty Customer needs
• Satisfy customer needs
• maintain Customer loyalty (by building customer relatonships)
• Anticipate changes in customer needs.

Question 11

What are the objectives of marketing?

Answer 11

• increasing revenue and profitability
• Increase or maintain market share
• maintain or improve the image of products or a business

Question 12

Why would firms want a larger a

market share?

Answer 12

If the firm can dominate the market it may be able to charge a higher price.

Question 13

What are some reasons for change in customer/consumer spending patterns?

Answer 13

• change in incomes
• ageing populations
• consumer tastes and fashions change
• change in technology

Question 14

Why have some markets become more competitive?

Answer 14

• globalisation of markets
• internet /e-commerce
• transportation improvements

Question 15

How can businesses respond to changing spending patterns and increased competition?

Answer 15

• maintain good customer relationships
• Keep improving its existing product
• keep low costs to maintain competitiveness

Question 16

What are the advantages of mass marketing?

Answer 16

• total sales in this market are very high
• the business can benefit from economies of scale
• opportunities for growth of the business due to large potential sales

Question 17

What are some methods of market segmentation?

Answer 17

By age

By gender

By social economic group

By region/location

Question 18

Potential benefits of market segmentation?

Answer 18

Businesses can sometimes identify a market segment whose needs are not being met

Businesses can sell more and increase even revenue

Customers may be more loyal to a business that provides products which are tailored specifically to them