chapter 10 - marketing, competition & customer Flashcards
1
Q
definition of:
customer
A
a person, business or other organisation which buys goods and services from a business
2
Q
marketing department
A
- promotion (organising and advertising for product)
- market researches (identity customer’s preferences, needs and wants)
- distribution (plan how to reach out to customers, transport product to customers)
3
Q
roles of marketing
A
- identify customer’s needs
- satisfy customer’s needs
- maintain customer loyalty
- anticipate change in customer’s needs (adapting to change; identify new trends)
4
Q
effects of successful marketing
A
- raise customer awareness of products and services
- increase revenue and profitability
- increase market share
- maintain image of business
- larger market segment
- enter new markets
- develop new products/ improve testing products
5
Q
why customer spending pattern may change
A
- price of product
- changes in customers income
- spending on advertising and promotional activities
- changes in tastes and fashions
- changes in population size and structure
- price of competitor’s product
6
Q
why do some markets become more competitive?
A
- legal controls (laws prevent firm from dominating market)
- deregulation (removal of gov’s control, firms become more competitive)
- financial aid
- e-commerce (websites worldwide; increase level of competition)
7
Q
definition of:
mass market
A
where there’s a very large num of sales of product
8
Q
advantages of mass market
A
- economies of scale reduce unit cost
- higher sales and profit
- changes in customers patterns have less impact on firms selling to mass market
9
Q
disadvantages of mass market
A
- more competition - lower price and profit margin
- not all markets are large enough to support mass marketing approach
10
Q
definition of:
niche market
A
a small, usually specialised, segment of a much larger market
11
Q
advantages of niche market
A
- able to survive and earn profit - target small part of market
- less competition - less wastage of resources
- consumers pay higher for higher status, exclusive - can earn higher profit margin
12
Q
disadvantages of niche market
A
- opportunity to earn higher attracts competitors
- no economies of scale
- changes in spending pattern have significant impact on firms
