Lesson 10 - Marketing competition and Customers

Question 1

What is the role of Marketing

Answer 1

• Identifying customer needs : By knowing what products customers want, what price they are ready to pay and how they are willing to buy these products.
• Satisfying customer needs: In order to achieve sales of their goods or customers. Customers want the right product in the right place and price.
• Maintaining cusomer loyalty:
• By building relationships with customers
• It is much cheaper to maintain existing customers than to earn new ones.
• Loyalty cards
• By offering services

Question 2

Define Market share

Answer 2

Market share is the percentage of total market sales held by one brand or business.

Question 3

Give 3 reasons why consumer spending patterns change.

Answer 3

• Change in income -High unemployment means much cheaper products need to be sold.
• Ageing population
• Consumer tastes or fashion changes
• Changes in technology

Question 4

Importance of changing customer needs

Answer 4

If business fails to respond to customer needs, they are likely to fail.

Question 5

Why some markets become more competitive

Answer 5

• Globalisation: Products are increasingly sold all overt the world
• Transportation improvements
• E commerce consumers can buy products from overseas

Question 6

How do business respond to changing spending patters

Answer 6

• keep costs low to maintain competitiveness.
• Keep improving existing products
• Maintain good customer relationships

Question 7

Define Mass market

Answer 7

A mass market is where there is a very large number of sales of a product..

Question 8

List 3 Advs of mass market

Answer 8

• Very large number of sales.
• Can benefit from economies of scale
• Opportunities for growth

Question 9

List 3 Disadvs of mass market

Answer 9

• High level of firms between firms
• High costs of advertising
• Standard use products may not meet specific needs of potential markets

Question 10

Define niche market, its advs and disadvs

Answer 10

•Niche market is a small, usually specialized, segment of a much larger market
Advs:
-Avoid competition from larger businesses
-The needs of specific customers
Disadvs:
-No opportunities for growth
- There is a bigger risk of failing since 1 product is being sold

Question 11

Define Market segment and how it helps business

Answer 11

Is an identifiable sub-group of a whole market in which consumers have similar characteristics or preferences

• Makes marketing expenditure cost effective
• Enjoy higher profits and sales
• Opportunities to increase sales by identifying market segments which haven’t got their needs fulfilled.

Question 12

Ways of segmenting market

Answer 12

• Socio economic group: Income groups can be defied by grouping people jobs according to how much they are paid
• By age
• By region: In different parts of the country people by different products
• By gender
• By lifestyle