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business Studies As Level > Meeting Customer Needs > Flashcards

Meeting Customer Needs Flashcards

1
Q

What do businesses do to make money?

A

Sell their goods and services in markets

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2
Q

How were markets historically defined?

A

Places where buyers and sellers would meet to exchange goods

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3
Q

What are some modern methods of trading goods and services?

A

Telephone, newspapers, mail order, Internet

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4
Q

What are consumer goods markets?

A

Markets where products such as food, cosmetics, and magazines are sold

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5
Q

What types of services are included in markets for services?

A
  • Hairdressing
  • Auditing
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6
Q

What is the housing market?

A

A market where people buy, sell, and let property

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7
Q

What are commodity markets?

A

Markets where raw materials such as oil, copper, wheat, and coffee are traded

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8
Q

What do financial markets trade?

A

Currencies and financial products

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9
Q

What does marketing involve?

A
  • Identifying the needs and wants of consumers
  • Designing products that meet these needs
  • Understanding the threat posed by competitors
  • Telling customers about products
  • Charging the right price
  • Persuading customers to buy products
  • Making products available in convenient locations
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10
Q

True or False: Marketing is solely about selling products.

A

False

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11
Q

Fill in the blank: Marketing involves _______ the needs and wants of consumers.

A

identifying

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12
Q

Fill in the blank: The housing market is where people _______ property.

A

buy, sell and let

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13
Q

What is a mass market?

A

A mass market is when a business sells the same products to all consumers and markets them in the same way.

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14
Q

Give examples of products sold in a mass market.

A
  • Fast-moving consumer goods
  • Crisps
  • Breakfast cereals
  • Computer software
  • Soft drinks
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15
Q

What is the potential customer base size in mass markets?

A

Possibly billions if products are sold globally.

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16
Q

What is economies of scale?

A

Producing large quantities at a lower unit cost.

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17
Q

What are the potential benefits of operating in a mass market?

A
  • Higher sales
  • Higher profits
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18
Q

What challenge do businesses face in mass markets?

A

High competition may lead to increased marketing spending.

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19
Q

What was Coca-Cola®’s advertising budget in 2016?

A

Around US$4000 million.

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20
Q

Define a niche market.

A

A niche market is a small market segment that has sometimes gone ‘untouched’ by larger businesses.

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21
Q

How does niche marketing differ from mass marketing?

A

Niche marketing involves selling to a small customer group with specific needs.

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22
Q

What advantages do small firms have in niche markets?

A
  • They can survive by supplying niche markets
  • They may avoid competition
  • Easier to focus on customer needs
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23
Q

What is an example of a business that targets niche markets?

A

Zumiez, which sells products related to surfing, skateboarding, and snowboarding.

24
Q

What is a potential risk for businesses in niche markets?

A

If a large business enters the niche market, they may easily overrun smaller rivals.

25
Q

Why might businesses relying on a single niche market be vulnerable?

A

They are not spreading their risk and may collapse if they lose grip in their chosen market.

26
Q

How can the size of a market be estimated or calculated?

A

By the total sales of all businesses in the market.

27
Q

What is market size usually estimated in?

A

Value and Volume.

28
Q

What does ‘Value’ refer to in market size estimation?

A

The total amount spent by customers buying products.

29
Q

What was the estimated value of the global fast food market in 2014?

A

Approximately US$495,000 million.

30
Q

What was the expected value of the global fast food market by 2020?

A

Approximately US$645,000 million.

31
Q

What does ‘Volume’ refer to in market size estimation?

A

The physical quantity of products that are produced and sold.

32
Q

How is the market size for domestic air travel in China measured?

A

By the number of passengers carried per year.

33
Q

What was the number of passengers carried for domestic air travel in China in 2016?

A

487,960 million.

34
Q

How are estimates of volume often based in service markets?

A

On the number or percentage of users, subscribers, or viewers.

35
Q

Give examples of service markets where volume is estimated based on users.

A
  • Number of mobile phone users
  • Number of television viewers
  • Percentage of households with digital television.
36
Q

True or False: Different markets are likely to differ in size.

A

True.

37
Q

Which market is likely to be smaller in size: the sale of savoury snacks or the sales of footwear in a year?

A

The sale of savoury snacks.

38
Q

What is market share?

A

The proportion of a particular market held by a business, product, or brand expressed as a percentage.

39
Q

How is market share calculated?

A

Sales of a business / Total sales in the market × 100%

40
Q

Why is measuring market share important?

A

It indicates market leadership, influences company strategies, and reflects business success or failure.

41
Q

A business with a small market share may set a target of increasing its share by _______.

A

5 per cent

42
Q

True or False: Market share can indicate whether a business is a market leader.

A

True

43
Q

What might influence other companies in the market based on market share?

A

The presence of a market leader.

44
Q

What might a business with a small market share do in response to its position?

A

Set targets to increase its market share.

45
Q

What does a high market share indicate about a business’s strategy?

A

It may indicate success in maintaining or growing its market position.

46
Q

What is the primary purpose of giving products a brand name?

A

To distinguish them from other products in the market

47
Q

Why is branding particularly important in mass markets?

A

Because many products are competing for a share of the market

48
Q

Name three examples of common brand names.

A
  • Google®
  • BBC
  • Toyota
  • Nike®
  • Apple®
49
Q

What are two goals of branding?

A
  • Differentiate the product from those of rivals
  • Create customer loyalty
50
Q

Fill in the blank: Branding helps with _______ recognition.

A

product

51
Q

What can strong branding enable a company to do?

A

Charge a premium price

52
Q

What is one way branding can influence customer perception?

A

Develop an image

53
Q

True or False: Branding is only relevant to luxury products.

A

False

54
Q

What might branding help to establish between a company and its customers?

A

Customer loyalty

55
Q

List two functions of branding.

A
  • Help product recognition
  • Charge a premium price

business Studies As Level (1 decks)

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