Meeting Customer Needs - 1.1 Flashcards
What is a Market?
A marker is any place either real or virtual where buyers and sellers come together to trade goods and services for money.
What is Market Share?
The proportion of a market a single business or brand is responsible for.
What is the Formula for Market Share?
Market share = (sales of one brand/total sales in the market) x 100
What are mass markets?
Markets where goods are produced in large quantities. Goods are made on a very large scale.
What are niche markets?
Where goods are produced in smaller quantities. They are small specialised markets.
What are advantages of mass markets?
-huge number of potential customers
-high revenue
What are the disadvantages of Mass Markets?
-high competition
- may need to spend lot of money on advertising to stand out from competitors
What are the advantages of Niche Markets?
-low competition
- easily target customers
What are the disadvantages of Niche Markets?
-can be too small to survive
- miss out on economics Miss of scale
What is E-Commerce?
The buying and selling of goods and services over an electronic network
What is Product Orientation?
An approach to business that places emphasis on the production process and the product
What is Market Orientation?
An approach to business that places emphasis on placing the consumer at the centre of the decision-making process.
What are the advantages of Product Orientation?
-less spending on market research
- help find key innovation that allows you to corner the market.
What are the disadvantages of Product Orientation?
-can be seen as inflexible
- costs can be high
What are the advantages of Market Orientation?
-making products customers want, so less product failures
- allows flexibility
What are the disadvantages of Market Orientation?
-market research is expensive and time consuming
- not always successful
What is Primary Research?
New information gathered by researcher
What is Secondary Research?
Research which already exists. Someone else has already gathers it.
What is Market Segmentation?
A market segment is part of a whole market where a particular customer group has similar characteristics
What are the advantages of Market Segmentation?
-loyal customers
- business avoid wasting promotional resources
- different products for different segments
What are the Disadvantages of Market Segmentation?
- can be too simplistic
- can narrow your target market too down
What are the 4 types of market segmentation?
Geographic, demographic, behavioural and psychographic
What is Market Positioning?
The view consumers have about the quality, value for money and image of a product in relation to those of their competitors
What is Market Mapping?
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.
