Marketing (1.2)

Question 1

What is marketing?

Answer 1

Marketing helps a business identify the needs and wants of its customers

Question 2

Why is satisfying customer needs beneficial?

Answer 2

-businesses can compete more effectively that competitors (more likely for profit
-customer loyalty and positive advertising
-businesses can keep up to sate with changing preferences , avoids becoming obsolete
-can avoid costly mistakes
-can increase sales

Question 3

What are the four customer needs na d wants?

Answer 3

Price: the amount of money customers are willing to pay (unique or luxury too?)
Quality: the standard / durability of a product or service (meet customers expectations)
Choice:giving customers a variety to choose from , can adapt to their preferences
Convenience: saving customer time and effort ( fast delivery, online shopping)

Question 4

Target market definition

Answer 4

The group of customers that a business expects to buy their product or service

Question 5

Market research definition

Answer 5

The process of gaining information about customers , competitors and market trends from primary and secondary sources

Question 6

Market segmentation definition

Answer 6

Dividing customers within a market onto smaller groups with the same characteristics and common needs or wants

Question 7

How do you segment a market?

Answer 7

-gender
-age:can help pricing (elderly homes can be more expensive, gen x clothing)
-location : region, urban or rural , also the weather in different countries
-income : luxury, essentials etc.
-lifestyle
-race/religion

Question 8

Advantages of market segmentation (4)

Answer 8

1: recognises that not all consumers are the same and can vary in preferences
2: can be used to target and advertise more precisely to get more sales
3: less expensive and wasteful
4: could increase customer loyalty if consumers feel the company suits to their needs (repeat purchases)

Question 9

Disadvantages of market segmentation (4)

Answer 9

1: not everyone within a segment will have the same preferences
2: may be difficult to identify a segment
4: requires more detailed market research, if not could lead to failure
4:a segment may be too small and unprofitable to cater for

Question 10

What is the purpose of market research?(4)

Answer 10

-IDENTIFIES CUSTOMER NEEDS AND WANTS, allowing a first mover advantage from competitors and to avoid becoming obsolete as preferences change
-RECOGNISES GAPS IN THE MARKET
- REDUCES LAUNCHING RISK limits marketing mistakes and improves budget decisions when starting a business
-INVESTIGATES THE POTENTIAL STRENGTH AND WEAKNESSES OF COMPETITORS can help your businesses product stand out

Question 11

What is Quantitive data ?

Answer 11

Based on numbers and could include financial reports ( sales, costs)

Question 12

What is qualitative data?

Answer 12

Gathers descriptions, emotions, impressions and opinions

Question 13

Limitations of quantitative data?

Answer 13

-Numerical data may be out of date
-numerical data does not provide reasons for an increase or decline in something

Question 14

Limitations of qualitative data.

Answer 14

-bias may be present
- in focus groups, people may be influenced by other opinions
- difficult to present in a graph/chart
-harder and longer to collect

Question 15

What is primary market research?

Answer 15

The process of gathering information directly from consumers (field research like interviews)

Question 16

Methods of primary research

Answer 16

• SURVEYS : a questionnaire, can be face to face or online, the most widely used
  -OBSERVATION: to study consumer behaviour in an appropriate location
  -INTERVIEWS: an interviewer asks questions (may take longer)
  -FOCUS GROUPS: free range discussion in a group

Question 17

Advantages of primary research.

Answer 17

-focuses on the needs of the business and will not be available to competitors
- allows in depth info to be gathered from respondents
-up to date and is relevant to the business

Question 18

Disadvantages of primary research

Answer 18

-sample size may be too small and unreliable
- researchers may have bias
-respondents may be influenced by others’ answers
-may need to hire a specialist (exonsive)
-time consuming

Question 19

What is secondary market research.

Answer 19

The collection, compilation and analysis of data that already exists

Question 20

Sources of secondary research

Answer 20

-government publications
-financial reports
-online databases
-media sources

Question 21

Advantages of secondary research

Answer 21

• information is already available so is quicker
  -info is often free (lower costs)
  -suitable for small businesses that lack budget or expertise

Question 22

Disadvantages of secondary research

Answer 22

-May lack relevance to the business and difficult to analyse
-May not be factually accurate
-could be expensive?
-May be out of date

Question 23

Gap in the market definition

Answer 23

Occurs when no business is currently serving the needs of customers for a particular product

Question 24

Market mapping definition

Answer 24

collecting information about competitors, such as revenue, growth rate and industry sectors, and then using that information to plot those companies on a graph or plot