MARKETING PT2

Question 1

what is mass marketing

Answer 1

selling of standardised products or ranges of products in the same way to the whole market

Question 2

advantages of mass marketing

Answer 2

-High sales can lead to lower average cost of production
-cost advantages can lead to lower prices for consumers
-publicity & clear brand identity

Question 3

Disadvantages of mass marketing

Answer 3

-lack of differentiation may not appeal to consumers
-low prices doesn’t establish a premium brand image for the product
-technology or other factors can lead to a fall in demand

Question 4

what is niche marketing

Answer 4

Identifying and exploiting a small segment of a larger market by developing differentiated products to suit that segment

Question 5

advantages of niche marketing

Answer 5

-small business survive and thrive
-unexploited niche has no competitors
-high prices can be charged
-can create status and image

Question 6

disadvantages of niche marketing

Answer 6

no economies of scale
-limited scope for business growth if there are few customers
-vulnerable to market changes if operates in one niche market
-if profitable can attract competitiors

Question 7

what are the different methods or market segmentation

Answer 7

1. Geographical:
   -consumers taste differ in
   different areas
2. Demographic:
   
   • Age, gender, income, family
     size
3. psychographic
   
   • difference between lifestyles personalities values and attitudes

Question 8

advantages of market segmentation

Answer 8

-businesses reach target market
-enables finding of gaps in market
-small firms can compete

Question 9

disadvantages of market segmentation

Answer 9

R&D cost may be high
-promotional costs may be high
-extensive market research required
-if consumers choices change significantly affects business

Question 10

what is customer relationship marketing

Answer 10

using marketing activities to build and establish good customer relationships so that the loyalty of existing customers can be maintained

Question 11

how can you develop long term relationships using CRM

Answer 11

-targeted marketing
-customer service and support
-communication with customers
-using social media

Question 12

benefits of CRM?

Answer 12

-higher sales
-creates brand loyalty
-word of mouth

Question 13

costs of CRM

Answer 13

-employees to be trained in customer feedback
-needs existing client base
-time consuming to respond to each customer