Identifying and Understanding Customers Flashcards
What is a Customer?
What is a consumer?
Someone who buys a product.
Someone who uses a product.
What range of needs might a customer have?
1) Value of money: This means that the price paid for a product should be fair when judged against the benefits received from consuming that product.
2) Sufficient information: Customers need information about our products so that they can decide whether it’s suitable for them to buy.
3) After sales (Or post sales) service: Customers need to know that the product that they will buy will be maintained or repaired after purchase. It’s important to reassure them both before and after the sale.
4)
What is marketing?
The process of identifying and satisfying customer needs in order to make a profit.
What is customer needs?
The desire that a customer hopes to satisfy through the purchase of a product.
What happens if a business’s sales increase?
1) Increasing sales can increase the businesses profits and help make it more powerful in the market.
2) It can afford to advertise more and to develop products.
What is the marketing mix?
All the activities that influence whether or not a customer buys a products.
How can business select the right marketing mix?
By thoroughly understanding customer needs.
What consequences may occur if a business doesn’t understand its customers and produces the wrong product?
1) Business might have to withdraw the product because sales are too slow.
2) To amend the products in some way, which may cost money.
3) To lower the price, which may reduce the profit.
4) Damage the brand name, which may affect the company’s future success.
What does the competitiveness of a business refer to?
Refers to its abilities to offer better value for money than its competitors.
Why is it important for a business to know their customers when being competitive?
The better you understand your customer, the more you can offer them the benefits they want.
how can a business select the right marketing mix?
