Chapter 10- Marketing, Competition + The Customer

Question 1

marketing

Answer 1

Identifying what the customer wants and satisfying them profitably

Question 2

Customer

Answer 2

Person, business or other organisation which buys goods or services from a business

Question 3

Describe marketing in a large public limited company

Answer 3

The marketing director will have people responsible for:

Market research of new products
Sales
Promotion
Distribution

Question 4

Draw the marketing department of a large PLC

Answer 4

Question 5

What is the sales team responsible for/contain

Answer 5

Sales of the product
There are separate for each region distributed to
If exported, export team

Question 6

Describe the market research team

Answer 6

They find out customer needs, market chances and impact of competitors actions

They report to the marketing director who will use information to make decisions

Question 7

Describe the role of the promotion team (4)

Answer 7

They organise and advertises products
Arranged for the production of the adverts eg. filming
Decide on campaign styles
Have a marketing budget and stick to it

Question 8

What marketing team has a budget

Answer 8

Promotion

Question 9

Describe the distribution team

Answer 9

They are responsible for transporting goods to the market

Question 10

Customer loyalty

Answer 10

Existing customers buying products from the same business

Question 11

Customer relationships

Answer 11

Communicating with customers to encourage them to become loyal to the business and its products

Question 12

What are the roles of marketing (5)

Answer 12

Identify customer needs
Satisfy customer needs
Maintain customer -loyalty+relationships
Gain information about customers
Anticipate changes in customer needs

Question 13

Identify customer needs

Answer 13

What products/services customers want
The price they are willing to pay
Where /how they want to by the goods services
What after-sale services they might want

Question 14

Satisfy customer needs

Answer 14

To sell goods and services profitability
Customers want right product, right place, right price
If needs not satisfied, they may go to competitors and the business may lose profit and close down

Question 15

What are after-sales

Answer 15

Asking if you are happy with your product.
Installation
Returns/refunding

Question 16

Maintain customer loyalty

Answer 16

By building customer relationships, check in on them ensures success.
Important to focus on keeping customers and not just new ones.
Eg. Loyalty cards

Question 17

Gain information about customers

Answer 17

By building relationships
Know what they want and when their wants change
Needs and wants, e-mail, phone number, name etc.
Means market research can be used to analyze why and how customers use and buy products

Question 18

Anticipate changes in customer needs

Answer 18

Identifying new trends in customer demands/gaps in market so the business can produce goods or services not currently available.

Question 19

What does the success of the marketing department enable the business to do (7)

Answer 19

Raise customer awareness of a product/service
Increase revenue and profitability
Increase/maintain market share
Maintain/improve the image of products/business
Target a new market/market segment
Enter new markets at home or abroad
Develop new products or improve existing products

Question 20

Why do businesses need to understand market changes and 2 eg.

Answer 20

So that they can change their goods and services to respond to market changes
Rapid changes: cellphones
Slow: cereal

Question 21

Why/how could customer/consumer spending patterns change (4)

Answer 21

Consumer tastes in fashions can change - trends
Technology can change - out with the old in with the new
Changes in incomes-economy good = sales good vise versa, the more you earn the more you spend
Aging populations - anti aging creams more in demand

Question 22

What is a dynamic market

Answer 22

A market that all businesses operate in, ever changing

Question 23

Power and importance of changing customer needs

Answer 23

How businesses respond to changing customer needs result in the outcome of the business. Failure to satisfy results in business failure. Businesses that have done their research know what the changes are and respond to them, resulting in successful business

Question 24

Why would a business need to respond to changing spending patterns and increased competition

Answer 24

To maintain level of sales and market share.

Question 25

Why have some markets become more competitive (3)

Answer 25

Globalisation
Internet/e-commerce
Improvement in transport

Question 26

How can a business respond to changing spending patterns and increased competition (4)

Answer 26

Maintain good customer relations
Keep improving existing products
Keep costs low
Bring out new products to maintain interest

Question 27

What is meant by a market

Answer 27

Total number of customers+potential customers+sellers for a particular good/service.
Can be measured by total number of sales or value of sales of goods and services
Can be mass or niche

Question 28

What is a Mass market

Answer 28

Where there is a very large number of sales of a product

Question 29

What is a Niche market

Answer 29

Small, usually specialized segment of a much larger market

Question 30

What is a a market segment

Answer 30

An identifiable sub-group of a whole market in which consumers have similar characteristics/preferences

Question 31

What are the advantages of mass marketing (4)

Answer 31

Total sales are high
Businesses can benefit from economies of scale
Risks can spread
Opportunity for growth+large sales potential

Question 32

What are the disadvantages for mass marketing(3)

Answer 32

High levels of competition
High costs of advertising/promotion
Standardized products+services don’t cater to all needs- leads to lost sales

Question 33

What are the advantages of Niche marketing (3)

Answer 33

Larger businesses focus more on mass markets, so there are fewer competitors
Customer needs can be targeted leading to good customer loyalty +relations
Limited demand may suit a business that is unable to produce on large scale
USP

Question 34

What are the disadvantages of Niche marketing (3)

Answer 34

Limited sales potential
No spread risks
Increased interest in Niche markets may attract larger companies

Question 35

What is segmentation

Answer 35

The process of dividing the total market into smaller groups of people who share similar characteristics

Question 36

Why are market segments used

Answer 36

It makes marketing expenditures cost effective-all marketing efforts go here and product is produced to meet specific needs
Higher sales+profits for business due to cost effective market
Helps to identify market segments with unmet needs-offers opportunities to increase sales

Question 37

Ways you can segment a market(6)

Answer 37

Socio-economic groups
Age
Lifestyle
Use of product
Gender
Region/location

Question 38

What are the benefits of market segmentation to the business

Answer 38

Helps sell more products as different brands can be made, each aimed to a different market segment
Helps the business identify gaps in the market-can then produce a suitable product and increase sales
Influence how products are presented+where they are sold to get max sales

Question 39

How can a business decide which method of market segmentation should be used

Answer 39

Making a detailed analysis of the market+size of each potential segment I. Terms of consumers and likely sales.
Whichever one would suit the company brand+image
Take into account the cost of entering each segment