marketing, competition and the consumer

Question 1

sections of the marketing department and their responsibilities

Answer 1

• sales team: responsible for the sales of a product, different for each region
• market research: finds out customer needs, market changes & the impact of competitor actions
• promotion: arranges for organising and producing advertisements
• distribution: transports the product to the market

Question 2

role of marketing

Answer 2

• identifying customer needs: what products or services customer’s want, how much they will pay, and how they want to purchase
• satisfy customer needs: ensure goods and services are sold profitably
• maintain customer loyalty: building customer relationships by keeping close links with customers and seeing what matches their needs
• build customer relationships: gain information about customers to better understand changing needs
• anticipate changes in customer needs: identify new trends in customer demand or gaps in markets so business can produce what is not currently available

Question 3

benefits of successful marketing

Answer 3

• raise customer awareness of product
• increase revenue and profitability
• increase or maintain market share
• maintain or improve image of products or business
• target a new market or market segment
• enter new markets at home or abroad
• develop new products or improve existing ones

Question 4

why markets change

Answer 4

• consumer tastes and patterns change
• changes in technology
• changes in income
• ageing population
  if businesses fail to adapt to these needs they will fail

Question 5

reasons why markets become more competitive

Answer 5

• globalisation of markets: products can be sold all over the world
• transportation improvements: easier & cheaper to transport products
• internet/e commerce: consumers can search for products and buy from overseas

Question 6

how is the size of a market measured

Answer 6

• total number of sales of that product
• value of sales for that product

Question 7

how businesses respond to changes in spending patterns and competition

Answer 7

• maintain good customer relationships: aware about changing needs
• keep improving existing products: making products different from competitors
• develop new products: keep customers interest in company and widen customer base
• keep costs low: maintain competitiveness

Question 8

benefits of mass marketing

Answer 8

• total sales in market high
• economies of scale
• risk spread as different types of product sold
• opportunities for growth of business due to large potential sales

Question 9

drawbacks of mass marketing

Answer 9

• high levels of competition between businesses selling similar products
• high cost of advertising and promotion
• standardised products or services do not meet specific needs of customers

Question 10

benefits of niche marketing

Answer 10

• small business can thrive as no competition from larger businesses
• needs of customers can be clearly focused on and targeted which leads to high customer loyalty and good customer relations

Question 11

drawbacks of niche marketing

Answer 11

• small market so not much growth
• specialise in only one product and if it fails the business will fail

Question 12

ways of segmenting a market

Answer 12

• socioeconomic group: income of people
• region or location: different weather and culture
• age groups: different tastes
• gender: gender specific products
• use of product: how to market it
• lifestyle: people may have same income but may not spend on same things for instance how big is their family

Question 13

benefits of segmentation

Answer 13

• identify a segment whose needs are not being met and target them
• product closely meets needs of customers so marketing more focused and cost effective
• can help maximise sales of product

Question 14

factors affecting segmentation used

Answer 14

• potential of each segment
• brand image
• cost of entering each segment