Marketing Chp 10

Question 1

Roles of marketing

Answer 1

1 Identify customers wants
2 Satisfy wants
3 Customer loyalty (loyalty cards, continue to meet their needs)
4 Gain info on customer ( Market research, changing needs are understood)
5 Anticipate changes to customer needs( new trends and gab in market)

Question 2

If the marketing department is successful in identifying their requirements…

Answer 2

1 raise customer awesomeness
2 increases revenue and profitability
3 increase or maintain market share
4 improve image of products
5 target NEW markets

Question 3

Market share

Answer 3

Is the percentage of total market sales held by one business

Question 4

Why do consumers wants change

Answer 4

• change in technology
• change in trends
• ageing population
• change in consumers income
• price of competitors prices
• change in prices of products

Question 5

Why some markets become more competitive

Answer 5

1 Globalisation- more products increasingly sold
2 Transport improvements- EASIER and CHEAPER to transport products to consumers
3 Internet / e commerce- consumers can buy products from overseas, increasing product info about products and INTERNATIONAL BUSINESS.

Question 6

How can the business adapt to changing patterns

Answer 6

1 Maintain customer relationships
2 keep improving existing products
3 Bring out new products to keep consumers intrest
4 keep COSTS low therefore prices low to keep competitiveness

Question 7

Market

Answer 7

For a particular good or service, is made up of THE TOTAL NUMBER OF CUSTOMERS and potential customers as well as SELLERS for the particular good or service

Question 8

Mass marketing

Answer 8

Is where there is a large no of sales of a product

Question 9

ADVANTAGES OF MASS MARKETING

Answer 9

1 economies of scale
2 Risks are spread ( business has a large variety of products)
3 Growth opportunities- large potential sales
4 sales are large

Question 10

DISADVANTAGES of mass marketing

Answer 10

1 High levels of competitiveness
2 High promotion costs
3 standardised products produced, thus not meeting all customers need
Therefore loss in sales.

Question 11

Niche Marketing

Answer 11

Small, usually specialised segment of a much larger market

Question 12

ADVANTAGES of niche marketing

Answer 12

1 Fewer competitors
2 small firms may match larger ones
3 USP firm can adapt its products to meet needs of that niche market
4 easier to target one type of customer
5 limited demand may suit a SMALLER firm that lacks resources

Question 13

Market segments

Answer 13

Identifiable sub group of a whole market in which consumers have similar preferences

Question 14

How do market segments help the business

Answer 14

1 Make marketing expenditure cost effective
2 Higher sales and hight profit
3 Identify market segments whos needs have not yet been satisfied

Question 15

Which method of segmentation should be used?

Answer 15

1 Detailed analysis of the market and potential size
2 Company image or brand
3 cost of entering each segment

Question 16

Marketshare

Answer 16

Is the percentage of total market sales held by a business

Question 17

Consumer

Answer 17

Buys goods or services for personal use