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BUSINESS PAPER 1 > meeting customer needs > Flashcards

meeting customer needs Flashcards

1
Q

where does a market exist

A

where buyers and sellers meet in order to exchange goods or services

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2
Q

mass markets

A

a business that aims at satisfying the needs of the whole market

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3
Q

market segment

A

is a subsection of a larger market in which consumers share similar needs and wants

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4
Q

a niche market

A

is a small segment of a larger market, specifically suited to consumer needs in that segment

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5
Q

mass marketing benefits

A
  • huge potential number of customers
  • higher production levels allow EOS
  • can use mass media advertising
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6
Q

benefits of niche marketing

A
  • meeting consumer needs more precisely allows higher prices
  • higher profit margins
  • easier to enter for firms with limited financial resources
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7
Q

mass and niche differences (characteristics)

A

mass - generic products which are broadly similar in form and function
niche - specialist products and services are required. changes in consumer interests can be devastating for the firm

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8
Q

mass and niche differences (market size and share)

A

mass - huge markets with large firms that can operate successfully despite low market share
niche - smaller markets meaning successful firms may achieve far higher shares of their niche than mass market firms

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9
Q

mass and niche differences (brands)

A

mass - huge brands develop with name/logo representing a key point in differentiation
niche - differentiation more likely achieved through product features/functions

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10
Q

dynamic market

A

a market that is constantly changing

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11
Q

online retail as a dynamic market

A

there is unpredictability of dynamism in online retail. But it is proven that firms that fail to switch to online retail can fail completely as rivals steal sales online. It is important to ensure ur product can be bought wherever consumers want to buy it

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12
Q

how can markets change

A

They change as a result of major external influences (PESTLE):

  • Political, government controlling wages.
  • Economic, recessions.
  • Social, increased desires for convenience lead to online retail.
  • Technological, taxis vs uber, machines vs people, online
  • Legal, new laws
  • Environmental, sustainable future.
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13
Q

what is another cause for markets to be dynamic

A

innovation - competing firms continually trying to develop new products that offer features that no rival has, once one firm is innovative, it forces rivals into adaption in order to keep up with rivals

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14
Q

how can markets adapt to change

A

market research and understanding general trends in the market. Change is not a simple process for firms, it affects all business functions

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15
Q

how does competition affect a market

A

this feature of business stimulates most change and development. there are various pressures it causes e.g:

  • the need to drive down costs
  • the need to maintain competitive prices
  • the need to develop innovative products and services
  • the need to maintain high quality of products and services
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16
Q

whats the difference between risk and uncertainty

A

risks can be quantifiable and can be identified, factors causing the risks are uncertainties, these can not be planned

17
Q

examples of uncertainties

A

reactions of rivals, reactions of consumers, reactions of retailers, unexpected events like economic downturns

18
Q

product orientation

A

an approach to making decisions that considers internal factors before worrying about changes in the market, therefore it may not be in line with customers wants

19
Q

market orientation

A

places consumers views and behaviours at the heart of decision-making within the business

20
Q

would product or market orientation lead to marketing success

A

market orientation

21
Q

primary research

A

is new research conducted for a particular purpose

22
Q

secondary research

A

uses pre-existing data that has been gathered for another purpose

23
Q

what can data collected either be

A

qualitative or quantitative

24
Q

quantitative research meaning

A

research conducted on a large-enough scale to provide statistically reliable data, usually aimed at discovering factual information about how customers behave

25
Q

qualitative research meaning

A

is unlikely to be carried out on a large-enough scale to give statistically valid data, but is instead aimed at providing insights as to why customers behave the way they do

26
Q

secondary research advantages / disadvantages

A

ad - often free, provides a good market overview, usually based on large-scale reliably produced research
dis - info could be out of date, not tailored to suit your particular needs, can be expensive to buy published research reports on markets

27
Q

primary research advantages / disadvantages

A

ad - addresses the specific issues you are interested in, data is up to date, can help you understand customer psychology
dis - expensive, risk of bias from questionnaire and interviewer, may need to compare with other info to understand the meaning of findings

28
Q

secondary research method examples/sources

A
  • the internet
  • trade press
  • government statistics
  • past internal sales figures
29
Q

primary research method examples/sources

A
  • surveys
  • retailer research
  • observation
  • group or individual discussions
30
Q

limitations to market research

A
  • sample size too small: respondents may not reflect overall views of market
  • sample bias: respondents selected may over-represent certain types of people
31
Q

how can ICT support market research

A
  • company websites that father data on visitors
  • social media offer info on consumer attitudes and allows for an element of relationship between consumer/business
  • database technology allows vast quantitites of data relating to consumers and identify patterns
32
Q

market segmentation

A

means discovering useful ways to split up a market into different groups of consumers who share similar characteristics and needs.

33
Q

what are benefits of market segmentation

A
  • products/services can be designed to suit specific customers
  • meeting customer needs precisely allows a higher price to be charged
  • promotional activity is easer to target

BUSINESS PAPER 1 (8 decks)

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