Meeting Customer Needs - 1.1 Flashcards

1
Q

What is a Market?

A

A marker is any place either real or virtual where buyers and sellers come together to trade goods and services for money.

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2
Q

What is Market Share?

A

The proportion of a market a single business or brand is responsible for.

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3
Q

What is the Formula for Market Share?

A

Market share = (sales of one brand/total sales in the market) x 100

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4
Q

What are mass markets?

A

Markets where goods are produced in large quantities. Goods are made on a very large scale.

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5
Q

What are niche markets?

A

Where goods are produced in smaller quantities. They are small specialised markets.

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6
Q

What are advantages of mass markets?

A

-huge number of potential customers
-high revenue

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7
Q

What are the disadvantages of Mass Markets?

A

-high competition
- may need to spend lot of money on advertising to stand out from competitors

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8
Q

What are the advantages of Niche Markets?

A

-low competition
- easily target customers

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9
Q

What are the disadvantages of Niche Markets?

A

-can be too small to survive
- miss out on economics Miss of scale

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10
Q

What is E-Commerce?

A

The buying and selling of goods and services over an electronic network

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11
Q

What is Product Orientation?

A

An approach to business that places emphasis on the production process and the product

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12
Q

What is Market Orientation?

A

An approach to business that places emphasis on placing the consumer at the centre of the decision-making process.

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13
Q

What are the advantages of Product Orientation?

A

-less spending on market research
- help find key innovation that allows you to corner the market.

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14
Q

What are the disadvantages of Product Orientation?

A

-can be seen as inflexible
- costs can be high

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15
Q

What are the advantages of Market Orientation?

A

-making products customers want, so less product failures
- allows flexibility

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16
Q

What are the disadvantages of Market Orientation?

A

-market research is expensive and time consuming
- not always successful

17
Q

What is Primary Research?

A

New information gathered by researcher

18
Q

What is Secondary Research?

A

Research which already exists. Someone else has already gathers it.

19
Q

What is Market Segmentation?

A

A market segment is part of a whole market where a particular customer group has similar characteristics

20
Q

What are the advantages of Market Segmentation?

A

-loyal customers
- business avoid wasting promotional resources
- different products for different segments

21
Q

What are the Disadvantages of Market Segmentation?

A
  • can be too simplistic
  • can narrow your target market too down
22
Q

What are the 4 types of market segmentation?

A

Geographic, demographic, behavioural and psychographic

23
Q

What is Market Positioning?

A

The view consumers have about the quality, value for money and image of a product in relation to those of their competitors

24
Q

What is Market Mapping?

A

Using market research a business can find out how consumers perceive their brand. This allows them to position their brand in the market, or find gaps in the market if they wish to launch a new product.