Marketing and people Flashcards
What is a market?
A market is any place wherebuyers and sellers can meete.g. amazon.co.uk or a shopping mall
What is the aim of marketing?
The aimofmarketing is to help identify, anticipate and satisfy consumer needs and wants profitably
What are needs considered to be? Give an example.
Needs are considered to be essential e.g. shelter or food
What are wants considered to be? Give an example.
Wants are desires which are non essential, even if consumers consider them to be essential e.g Nike trainers
What is market research?
Market research is the process ofsystematically gathering datafrom consumers which can be used to influence the business decisions
Why is matket research essential in businesses?
It helps businesses to identify products/services they can develop in response to the needs and wants that their customers have
What are products aimed at in mass markets? Give an example.
Inmass markets,products are aimed at broadmarket segmentse.g Kellogg’s Corn Flakes is an example of a breakfast cereal aimed at the mass market
What are market segments? Give an example.
Market segments are groups of consumers who share similar characteristics e.g. age, lifestyle, etc.
When does mass marketing occur?
Mass marketingoccurs when businesses sell their products to most of the available market
Production usually happens on alarge scale
In niche markets, what are products aimed at? Give an example.
Inniche markets,products are aimed at a subset of the larger market e.g. gluten free products
When does niche markets occur?
Niche marketingoccurs when businesses identify and satisfy the demands of asmall group of consumerswithin the wider market
Production usually happens on asmall scale
State characteristics of mass markets
*Products areless uniqueas they are aimed at broad market segments
*Low average costsdue large scale productioneconomies of scale
*Low prices lead togreater affordabilityand higher sales volumes
*Low prices lead tolower profit margins
*Primark is an example of a clothing company that focuses its product on the mass market
State characteristics of niche markets
*Products aremore specializedand unique as they are aimed at narrow market segments
*High average costsdue to small scale production
*They do not benefit from economies of scale
*High prices make products less affordable and lead tolower sales volumes
*High prices can allow businesses to earnhigherprofit margin
*Louis Vuitton is an example of a fashion company that aims its products at aniche market
How can the size of markets be measured through?
The size of a market can be measured throughsales volumeorsales value
What are sales volumes?
Sales volume is thenumber of productssold i.e the physical number of units sold
