Customers Flashcards
What is the role of the marketing department?
The role of the marketing department is to anticipate, identify and satisfy the needs and wants of customers
What does marketing aim to raise?
- Marketing aims to raise customers awareness of their products
- The level to which they try and meet the needs of customers will depend on whether the business is market led or product led
Characteristics of Market Led businesses?
- The business develops products based on customers wants
- high levels of market research carried out to determine customers wants
- market-led businesses often exist in highly competitive markets
- the marketing mix will be responsive to changes in external factors and consumer behaviour
What are advantages of market led businesses?
- the business is better placed to anticipate any dynamic market changes and is flexible enough to react quickly due to its constant use of market information
- it will be more confident that the launch of the new product or service will be a success, having done the research groundwork and understanding the needs of the consumers
- it will be in a stronger position to deal with the challenges of any rival companies entering the market, as it will be fully aware of the market it operates in
What are disadvantages of market led businesses?
- market research is very expensive
- the future is unpredictable and as business is dynamic by its very nature, there is a high risk of failure
- there will be a constant change within the organisation as it strives to meet the needs of the market and stay ahead of competitors
Characteristics of product led businesses
- the business produces products that it believes customers will want and tries to convince them to buy them
- market research is not seen as important. There are, however, high levels of product research and development
- new technologies, with little to no competition, are often product led
- often the product is unresponsive to changing external factors
Advantages of product led businesses
- organisations can focus on the quality of their product or service and take their time in production
- the organisation could invest in technology and apply it to their product or service or a wider range of products/services
- the organisation could employ an outsourcing organisation to produce its product, leaving it free to continue its core business in the design of new products
Disadvantages of product led businesses
- the actual needs of the market are completely ignored
- this technology could be quickly superseded once competitors enter the market and the original organisation could find that its product has become outdated
- any changes in tastes or fashions will not be accounted for
What do businesses especially market led businesses need to take account of?
They need to take account of consumer behaviour
What is consumer behaviour?
Consumer behaviour is the thoughts consumers have and the actions they take when purchasing products
Why do businesses look at consumer behaviour?
In order to satisfy consumers needs and wants, the market led business need to understand why, what, how and where consumers buy products
Why do consumers buy products? Description and impact on market led business
- need/want, social status, gift for someone else
- businesses need to understand the different motivations customers have an offer products accordingly
What types of purchases do consumers make?
- routine/habitual
- impulse
- informed
Routine/habitual
This is the type of purchasing scenario whereby the purchaser of a product or a service has past experience with purchasing it and automatically makes decision to purchase again. Brand recognition plays a large part in routine response behaviour. Eg -cereal -washing powder -toiletries
Impulsive
Buying something without thinking, often in the spur of the moment It might be because something has influenced the customer to buy (eg a promotion) Eg -chocolate -clothing -beauty products
