Marketing, Competition and the customer 3.1

Question 1

What is the role of marketing

Answer 1

Identify customer needs
Satisfying customer needs
Maintaining customer loyalty
Building customer relationships

Question 2

Why do customers spending patterns change

Answer 2

Consumer taste and fashion change
New technology being developed
Changes in consumer income
Ageing population

Question 3

Why have some markets become more competitive

Answer 3

Globalisation - Businesses can sell to the world
Internet allows customers to buy from all around the world
Better transportation to be distributed around the world

Question 4

How can businesses respond to spending patterns and increased competition

Answer 4

Develop and maintain customer loyalty
Keep improving their products and develop new ones that meet consumer needs and wants
Keep costs low to remain competitive

Question 5

What is mass marketing and the advantages and disadvantages

Answer 5

When you aim products at the whole market

Higher sales and demand leading to more profit
Benefit from economies of scale

Higher levels of competition
Specific customer needs are not met

Question 6

What is niche marketing and the advantages and disadvantages

Answer 6

Tailoring product to a particular type of customer

Small businesses can avoid competition from larger businesses
Product meets specific consumer needs

Smaller number of consumer so growth is difficult
Risks are not spread so if demand for the specialised product falls, the business will likely fail

Question 7

How are businesses segmented

Answer 7

Gender
Age
Income
Location
Lifestyle

Question 8

What are benefits of segmentation to a business

Answer 8

Business can concentrate on specific customers

Marketing becomes more effective (e.g. advertising)