Identifying And Understanding Customers Flashcards
Define customer needs
The desires that a customer hopes to satisfy through the purchase of a product.
Marketing
A series of business activities designed to ensure that customers receive the correct products in the correct quantities at the right time.
Some examples of customer needs:
Value for money - price paid should be fair against benefits received from consuming the product
Sufficient information - need info so they can decide
After sales service - customers need to know if product is repaired or maintained after purchase.
How can a business satisfy customer needs?
Sell popular products and increase sales
Selection the correct marketing mix
Avoid costly mistakes
Be competitive
What is a market?
Markets bring buyers and sellers into contact. The term refers to the number of sales of a particular type of product over a period of time.
How to measure size of market?
The quantity of products sold
The value of products sold
What is segmentation
Occurs when a market is divided into different groups of needs and wants.
How are markets segmented?
Gender - require different needs
Age - different needs
Income - high prices or lower
Location - target suitable customers
Why do businesses segment markets?
To provide customers with the most suitable products
Price products more flexibly - can sell different products at different prices to meet the different needs of customers
Develop new products successfully- more detailed understanding of customer need which will help develop, maintains customer loyalty
