meeting customer needs Flashcards
market
where buyers and sellers meet in order to exchange goods and services
mass market + 1 benefit/ negative
produce goods/services aimed at satisfying the needs of a whole market
benefit: more customers
negative: more competition
niche market + 1 benefit/negative
sell to a segment of the whole market and sell products that specifically suit the needs of consumers in that segment
benefit: allows premium pricing
negative: expensive/ risk of failing as not a mass target market
dynamic market
a market constantly changing e.g fashion industry
how do markets change + adapting to change
PESTLE Political - government wages Economics - recessions Social - increased desire for convenience Technological - machines vs people Legal - new laws Environment - sustainable future adapt via market research to understand general trends in the market (meets customer needs) ALSO COMPETITION
product orientation vs market orientation
product orientation approach focuses on decisions based on internal factors before worrying about market. market orientation considers consumer desires while manufacturing a product
marketing definition
term used to describe things that businesses do to try and create demand among consumers for their product/ service
market research types
primary research- new research conducted for a particular purpose e.g surveys
secondary - uses pre existing data that has been gathered for another purpose e.g the internet
limitations of Market research
reasons why research data may be unreliable
- sample size too small
- sample bias
market segmentation
splitting up the market into different groups of consumers who share similar characteristics/ needs so products can be designed to suit customer needs
market positioning / mapping
deciding what exactly image you are trying to create for your product
mapping - a business can identify gaps in the market more easily and also see consumer behaviours
competitive advantage
gaining an advantage over rivals in order to sell at premium prices through branding logo promotion etc
product differentiation
attempting to make your product seem different to stand out from rivals, achieved through tangible differences (designs, functions)
quantitative research vs qualitative research
quantitative provides statistically reliable data on how customers behave, qualitative provides insights as to why customers behave in the way they do
innovation and market growth
innovation is a major cause of change as competing firms are always trying to develop new products
