meeting customer needs Flashcards
what is a mass market
large market of customers with widely different backgrounds
3 positives of a mass market
- economies of scale
- can deal with high sales volumes
- can afford marketing campaigns and advertising
2 negatives of a mass market
- fierce competition
2. need a unique selling point
what is a niche market
smaller section of the market with a focused product or service. product will be carefully tailored to satisfy specific market
2 positives of niche market
- less competition
2. products can be tailored to customer needs
2 negatives of niche market
- fewer potential customers
2. difficult to persuade retailers to stock products
what is a dynamic market
emerges, grows, changes and can decline very quickly
2 negatives of a dynamic market
- customer demand is unpredictable
2. difficult to forecast sales due to rapid change
how can you minimise uncertainty
market research
market research is
information gathered on a customers (behaviour and wants in relation to a service or product)
product orientation is
business focus primarily on creating and developing a high quality product or service
1 positive and 1 negative of product orientation
+ve- allows focus on product quality and innovation
-ve- put customer needs second
market orientation is
the business choses to design a product or service to meet requirements of customer preferences
2 positives of market orientation
- close fit to customer expectations
2. greater responsiveness to change in customer needs
1 negative of market orientation
regular change in product appearance may leave customers confused
4 types of primary research
observation
online surveys
face to face survey
focus group
4 types of secondary research
government statistics
published market research reports
businesses own data
competitors data
market segmentation is
dividing the market up into smaller sets of customers who have similar needs or interests
market mapping is
creating a diagram that identifies all the products in the market using two key features
to spot a need or want (gap in the market)
product differentiation is
actual or perceived features of a service used to convince customers to buy
