Meeting Customer Needs Flashcards
What is product proliferation?
When a business will operate in a mass market but at the same time will offer products in the niche market.
What are the advantages of a niche market
-less competition
-can target specific customers
- can charge a higher price
- profit margins are often higher
- customers are more loyal
What are the disadvantages of a niche market
- risk of dependence on a single product or market
- likely to attract competition if successful
- vulnerable to market changes
What is a market?
A market is any place that buyers and sellers will come together to exchange goods or services. There will be an exchange of money at a set price.
What is market share?
Is the percentage share of the overall market held by a product, brand or business
What is the equation for market share?
(Business sales/market sales) x 100
What is market growth?
Is the percentage growth of the overall market size (value or volume) over time
What is the equation for market growth?
(Market size this period/ market size last period) -1 x100
What is product orientation?
A business that adopts a product orientated approach develops products based on what it is good at doing and focuses Moore on design performance and quality when making marketing and product decisions.
What is market orientation?
A business that adopts a market orientated approach responds more to customer needs and wants. It focuses on identifying and meeting customer preferences when making marketing and production decisions.
What is a dynamic market?
A market that is likely to change.
Examples include film industry, taxi services etc
What is a niche market?
A smaller segment of a larger market, where customers have specific needs and wants requiring differentiated products
What is a mass market?
The largest part of the market, where there are many similar, undifferentiated products offered by a competitor
What is the purpose of market research?
Market research involves the gathering and analysis of research to help support the implementation of marketing strategy
What are the different types of market segmentation
- Geographic (where you live, climate)
- Demographic (age,gender,income,social class, ethnicity+religion)
- psychographic (attitudes,opinions,lifestyle)
- behavioural (how frequent/often purchases are made)
