Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Theme 1 > Meeting Customer Needs 1.1 > Flashcards

Meeting Customer Needs 1.1 Flashcards

1
Q

What is a market?

A

Any place where buyers and sellers meet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the aim of marketing?

A

Help identify, anticipate + satisfy customer needs + wants profitably

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is market research?

A

Process of systematically gathering data from consumers which can be used to influence business decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a mass market?

A

Business sells into the largest part of the market
- Where similar products offered by competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the characteristics of a mass market?

A
  • Products less unique
  • Low average costs (economies of scale)
  • Greater affordability
  • Lower profit margins
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the advantages of mass markets?

A
  1. Economies of scale
  2. High revenue
  3. Easy (equal target)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the disadvantages of mass markets?

A
  1. Competition
  2. Products same, so need differentiation in marketing
  3. Not flexible with demand change
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a niche market?

A

Business targets smaller segment of a larger market (customers specific needs/ wants)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the characteristics of a niche market?

A
  • More specialized products
  • High average costs
  • Lower sales volume
  • Higher profit margin
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the advantages of a niche market?

A
  1. Less competition
  2. Clear focus
  3. Charge higher price
  4. Higher profit margin
  5. Loyal customers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the disadvantages of a niche market?

A
  1. Lack of economies of scale
  2. Risk of overdependence on product
  3. Attract competition if successful
  4. Vulnerable to market change
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is market size?

A

Total number of potential customers who could buy your product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is market growth?

A

Measures the rate of change of market size

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is market share?

A

Share of the total market that is owned by a particular business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the market share equation?

A

Sales of business/ total sales in market x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the sales revenue equation?

A

Price x quantity sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a brand?

A

Name/ image/ logo which helps one product stand out from competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a dynamic market?

A

Constantly changing
- Meet customer needs
- Impact of tech
- Impact of new market entrants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is online retailing?

A

Selling products via the internet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the benefits of online retailing?

A
  1. Business costs lower (no physical shop + hiring)
  2. Customers can compare prices (bad for business)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the drawbacks of online retailing?

A
  1. More competition
  2. Customers unable to see product physically
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is innovation?

A

Development of a new idea which leads to the production of a new product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the advantages of innovation?

A
  1. Allows businesses to improve product portfolio
  2. Increase efficiency
  3. Develop USP
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are the pressures for innovation?

A
  1. Social changes increase demand for innovative products
  2. Competition increase business focus on innovation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

How does competition affect the market?

A
  1. Battle for market share
  2. Pricing
  3. Battle for competitive advantage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is competition?

A

Rivalry among sellers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is competitive advantage?

A

Ability for a business to add more value:
- Better attributes
- Better features
- USP

28
Q

What is a risk?

A

Possibility that things go wrong
- Factors that aren’t expected but can be quantified

29
Q

What is uncertainty?

A

Unpredictable/ uncontrollable events that affect business
- Being unsure of factors influencing sales

30
Q

What is market research?

A

Gathering + analysis of research to support implementation of marketing strategy

31
Q

What important insights does market research give?

A
  1. Dimensions of market
  2. Competitor strategies
  3. Customer needs, wants + expectations
  4. Market segments
32
Q

What is product orientation?

A

Focuses on characteristics of product rather than needs of customer
- Make product 1st then find market

33
Q

What are the advantages of product orientation?

A
  1. Allows business to focus on product quality + innovation
34
Q

What are the disadvantages of product orientation?

A
  1. Product may be admired but not sell
  2. Employees may not know how to make product
35
Q

What is market orientation?

A

Focuses on needs of consumers + uses this info to design products that meet needs

36
Q

What are the advantages of market orientation?

A
  1. Close fit with customer expectations
  2. Greater responsiveness to change in customer needs
37
Q

What are the disadvantages of market orientation?

A
  1. Customer confusion if regular change in appearance of function of product
  2. Business struggle to keep up with product orientated businesses
  3. Don’t work well for customers who care mostly about cutting edge products
  4. Doesn’t mean everyone wants it
38
Q

What is primary research?

A

Data collected first-hand for a specific research purpose

39
Q

What are the advantages of primary research?

A
  1. Info focused on needs of business
  2. In-depth info
  3. More up to date + able to ask specific questions
40
Q

What are the disadvantages of primary research?

A
  1. Sample size too small
  2. Bias
  3. May need to hire a specialist market research agency (expensive + time consuming)
41
Q

What examples are there of primary research?

A
  1. Observation
  2. Surveys
  3. Online surveys
  4. Face to face survey
  5. Focus groups
  6. Test marketing
42
Q

What is secondary research?

A

Data that already exists + which has been collected for a different purpose

43
Q

What are the advantages of secondary research?

A
  1. Info available + quicker to collect
  2. Cheaper to collect
  3. Suitable for small businesses
44
Q

What are the disadvantages of secondary research?

A
  1. Info may lack relevance
  2. Expensive to purchase market specific data
  3. Info may be out of date
45
Q

What is quantitative data?

A
  • Based on data
  • Based on larger sample= statistically valid
46
Q

What are the benefits of quantitative data?

A
  1. Data easy to analyse
  2. Numerical data shows relevant trends
  3. Compared with data from other sources
47
Q

What are the drawbacks of quantitative data?

A
  1. Focus on data rather than explanation
  2. Doesn’t explain reasoning behind data
  3. Lack reliability if sample size not valid
48
Q

What is qualitative data?

A
  • Based on opinions, attitudes, beliefs, intentions
  • Understands why customers behave in certain way
49
Q

What are the benefits of qualitative data?

A
  1. Essential for product development/ launch
  2. Focus on understanding customer needs
  3. Highlight issues that need addressing
  4. Effective way to test marketing mix
50
Q

What are the drawbacks of qualitative data?

A
  1. Expensive to collect/ analyse
  2. Based around opinion
51
Q

What is sampling?

A

Gathering of data from a sample of respondents, results should be representative of population

52
Q

What are the benefits of sampling?

A
  1. Small sample size provides useful research
  2. Reduce risks + costs if done before decisions
  3. Flexible + quick
53
Q

What are the drawbacks of sampling?

A
  1. Sample may be unrepresentative of population
  2. Risk of bias
  3. Less useful in market segments
54
Q

How is ICT used to support market research?

A
  • Computer websites-> collect primary data cheaply
  • Databases-> store large amounts of customer info
  • Social networking-> gather info about consumers
55
Q

What is market segmentation?

A

Process in which a single market is divided into sub markets

56
Q

Why should businesses segment their markets?

A
  1. Better matching of customer needs
  2. Better opportunity for growth
  3. More effective promotion
  4. Gain higher share of market
57
Q

What are the different types of segments?

A
  1. Geographic
  2. Demographic
  3. Behavioural
  4. Psychological
58
Q

What are the advantages of market segmentation?

A
  1. Recognise customers aren’t identical
  2. Products altered to meet needs
  3. Less expensive + wasteful
  4. Increase loyalty
59
Q

What are the disadvantages of market segmentation?

A
  1. Not everyone in segment behaves same
  2. Difficult to identify segment
  3. Requires more detailed market research
  4. Segment to small/ unprofitable
60
Q

What is market positioning?

A

Process a business goes through when launching a new product

61
Q

What is market mapping?

A

Tool for identifying the position of a product within a market

62
Q

Why are market maps useful?

A
  1. Gaps identified
  2. Comparisons between products + rivals
  3. Simple to construct
63
Q

What are the limitations of a market map?

A
  1. Gaps may not be profitable to fill
  2. Primary research expensive
  3. Only 2 criterias
  4. Markets dynamic
64
Q

What are the sources of competitive advantage?

A
  1. Delivery times
  2. Customer service
  3. Price
  4. Reliability
  5. Brand image + reputation
  6. Ethical stance
  7. Design
  8. Quality
65
Q

What is product differentiation?

A

Customers perceive distinct difference between product and competitors
- Compete effectively
- Protect + build brand
- Add more value

66
Q

What is adding value?

A

Difference between price that is charged to customer + cost of inputs required to create product

67
Q

What are the methods of adding value?

A
  1. Marketing + branding
  2. Functions + features
  3. Packaging
  4. Customisation
  5. Customer service
  6. Convenience
  7. Design
  8. Product differentiation

Business Theme 1 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions