Customer Flashcards
what is a market
place where buyers/sellers come together to buy/sell goods/services
what are some examples of a market
online
shops
restaurants
magazine adverts
what is marketing
functional activity that is more than reminding customers about a product, involves building good relationships by identifying and satisfying customer requirements
how can a business satisfy customers requirements
carrying out market research
researching and developing products
deciding on packaging
deciding on location to sell
setting suitable price
advertising, promotion and selling
why is marketing important to organisations
must meet customer needs
make target customers aware of what the firm offers
why is marketing important to non profit organisations
schools, hospitals, charities use marketing to become more effective in ensuring customers get what they want
how can market growth be achieved
obtaining a large market share, even if this means making a small loss for a short period of time
what is market share
a percentage of all a businesses sales in a market
when one firm’s market share increases
another firm’s will fall
when is it difficult to achieve market growth
in an established market, where there is a great deal of competition
what is a product led business
a business that will decide production, based on the invention of a new product. can be uncertain, as perhaps no-one will be interested in the product
where do product led businesses operate
high tech industries
with little competition
what are examples of product led businesses
apple
tesla
what are the advantages of a product led business
firm can focus on quality of product/service
firm can invest in technology & apply it to their product/service
firm can employ outsourcing organisation to produce their product
what are the disadvantages of a product led business
actual needs of market completely ignored
technology could become superseded once competitors enter the market
changes in tastes of fashions not accounted for
what is a market led business
find out what the customer wants through intensive market research, then creates product that will satisfy those wants
where do market led businesses operate
competitive markets such as make-up and clothing
what are the advantages of a market led business
easier to anticipate dynamic market change & flexible enough to react quickly due to constant market research
more confident the launch of a product will go well due to the research completed
in a position to deal with challenges of rival companies, as are fully aware of the market they operate in
what are the disadvantages of a market led business
market research very expensive
future unpredictable, and a high risk of failure due to dynamic nature of firm
constant change within firm as it strives to meet needs of market and stay ahead of competitors
what are the types of consumer trends and behaviour
routine consumer behaviour
informed consumer behaviour
impulsive consumer behaviour
what is routine consumer behaviour
requires little involvement by the consumer
routine purchases made automatically for needs
sales promotions such as BOGOF can be used to influence routine purchasing
what is informed consumer behaviour
when customer takes time to investigate the product
will consider different products on offer
behaviour used when customer purchasing expensive, long-term goods such as cars/expensive technology
what is impulsive consumer behaviour
happen without any prior planning or thought
often happens when product catches customer’s eye, such as bar of chocolate at checkout
effect point of sale displays influence impulsive purchasing
