GCSE business 1.2

Question 1

What are customer needs (4)and why are they improtant?

Answer 1

-price
-Convenience
-quality (popular with wealthy men)
-choice
Why: feel what there buying is worth way there spending, must reevaluate needs to ensure growth. Customers are only wat to generate sales

Question 2

Why is market research useful

Answer 2

Find out potential customers, competitors and gaps in market(reinforces business decisions and reduce risk) to make correct decisions

Question 3

What is primary research (examples too!

Answer 3

Research carried out by business (is less unbiased although takes long time)
. Involves, interviews and focus groups(qualative) observations and surveys(quantitative)

Question 4

What is secondary reseach(examples!!)

Answer 4

Research arch that has already been gathered by someone else(government reports, internet, market reports) ADV lots of data and quicker, although may be out of date

Question 5

What is qualitiive and quantitive data

Answer 5

Qualitive data is thought and feeling. Qauntataive data is a numerical number

Question 6

What are the 7 market segmentations?

Answer 6

Age
Income
Location
Gender
Socio-economic grouping.
Demographics(identify characteristics)
Lifestyle( market product fit customer wants)

Question 7

What is market segmentation used for?

Answer 7

Allows bussines to target product/service to right audience to maximise sales=maximise profits. This is from customers disposable income.

Or identify target market, so they can develop marketing strategies to be effective for marketing product/service

Question 8

How are market maps usefal

Answer 8

Helps identify gaps In The market to find demand for identified product. (Differentiate from competitors)

Question 9

What are the method a bussines can compete for(there’s 5!!!) and why?

Answer 9

+price
+products range
+quality
+customer service
+location
Why: important to understand competition to choose the best way to try and be better without lot of profit loss

Question 10

What is a monocle and why do government want to avoid it?

Answer 10

Monopole is when a bussines shad control over 25% of market. This will reduce the competition that drive for better bussineses

Question 11

How do bussines adapt marketing mix for competition?(4ps)

Answer 11

-price deals/ promotion, to earn less profit but more customers.
-promote bussines to create more awareness, for customers to choose them . Is expensive
-place: reach more competitors and coverage across country to gain more
customer base(cost high)
-Quality -
-customer service—willing to pay more money
-product range-more attractive bussines