marketing, competition and the customer

Question 1

define marketing

Answer 1

identifying customer wants and satisfying them profitably

Question 2

define a customer

Answer 2

a person, business or other organisation which buys goods or services from a business

Question 3

the marketing department consist of 4 different teams. What are they and what do they do?

Answer 3

sales team: in charge of product, plan strategies to see products
market research: finds customers needs and impact of competitors ‘action
promotion team: organising and advertising
distribution channel: transport product to market

Question 4

there are 5 roles of marketing, what are they?

Answer 4

identify customer needs
satisfy customer needs 
maintain customer loyalty 
gain information about customers 
anticipate changes in customer needs

Question 5

what is the meaning of customer loyalty

Answer 5

when existing customer continually buy products from the same business

Question 6

what is customer relationship

Answer 6

communicating with customers to encourage them to become loyal to the business and its products

Question 7

name 7 possible objectives of marketing department

Answer 7

raise customer awareness of produce/ service of business
increase revenue and profitably
increase or maintain market share
target new market or market segments
enter new market at home or abroad
develop new products or improve image of products

Question 8

what is market share

Answer 8

percentage of total market sales held by one brand or business

Question 9

what is a consumer

Answer 9

buys goods or serve for personal use - not to resell

Question 10

what are the 4 reasons customer spending patterns change?

Answer 10

changes in technology: older products don’t sell well
consumers taste and fashion change
changes in income: if economy has low employment, then population will buy cheap things
ageing population: anti aging products are in demand

Question 11

why is it important for business to understand market changes

Answer 11

if they fail to respond to customer need, they would most likely fail

Question 12

what are the 3 reasons some market become more competitive

Answer 12

globalisation of market: products are sold all over the world
transportation improvement is easier and cheaper
internet/e-commerce: people can buy and search in overseas market

Question 13

how can a business respond to changing spending patterns and increased competition

Answer 13

maintain good customer relationship
keep improving its exiting products to help with competition
bring out new products to keep customers’ interest
keep cost low to maintain competitiveness

Question 14

what is a market and how do you measure it

Answer 14

total number of customers, potential customers, sellers for a particular good or service
measure total number or by value of sales

Question 15

what is mass marketing

Answer 15

where there is a very large number of sales of products

they have to appeal to whole market to attract the most customers

Question 16

what are the advantages mass marketing

Answer 16

total sales are high
economies of scale
risk are spread as business sell different variations
opportunity of growth due to large potential sales

Question 17

what is niche marketing

Answer 17

small usually specialised segments of a much larger market

Question 18

what are the advantages of niche marketing

Answer 18

high level of customer loyalty and good customer rs as needs of customers can be closely focus on
small business may be able to sell successfully cuz larger business may not hv identified them and focus on mass marketing
large business have less competition

Question 19

what are the disadvantages of mass marketing

Answer 19

high level of competitions
high cost of advertising and promotions
may not reach specific needs as it is standardised –> loss of consumers

Question 20

what are the disadvantages of niche market

Answer 20

limited sales potential due to small size , can only be profitable in niche markets and would need to develop new products for mass market to grow
risky is products become out of demand

Question 21

what is market segments

Answer 21

identifiable subgroup of a whole market in which customers have similar characteristics or preferences

Question 22

what are the ways segmenting business can help

Answer 22

make marketing cost effective by producing a product which closely meets needs of customers
enjoy higher sales and profits for business due to cost effective marketing
identifying market segments which is not having its need fully met and offers opportunities to increase sale

Question 23

what are a few ways of segmenting a market

Answer 23

social economic groups like income, age, location, gender, use of product and lifestyle

Question 24

benefits of segmentation to a business

Answer 24

sell more products - make diff brand that appeal to diff segments
increase sales- can identify segment who’s needs are not being met

Question 25

what are the factors business should consider before choosing method of segmentations

Answer 25

detailed analysis of market and size in terms of likely sales
company image and brand
cost of entering each segments