meeting customer needs

Question 1

what is a mass market

Answer 1

large market of customers with widely different backgrounds

Question 2

3 positives of a mass market

Answer 2

1. economies of scale
2. can deal with high sales volumes
3. can afford marketing campaigns and advertising

Question 3

2 negatives of a mass market

Answer 3

1. fierce competition

2. need a unique selling point

Question 4

what is a niche market

Answer 4

smaller section of the market with a focused product or service. product will be carefully tailored to satisfy specific market

Question 5

2 positives of niche market

Answer 5

1. less competition

2. products can be tailored to customer needs

Question 6

2 negatives of niche market

Answer 6

1. fewer potential customers

2. difficult to persuade retailers to stock products

Question 7

what is a dynamic market

Answer 7

emerges, grows, changes and can decline very quickly

Question 8

2 negatives of a dynamic market

Answer 8

1. customer demand is unpredictable

2. difficult to forecast sales due to rapid change

Question 9

how can you minimise uncertainty

Answer 9

market research

Question 10

market research is

Answer 10

information gathered on a customers (behaviour and wants in relation to a service or product)

Question 11

product orientation is

Answer 11

business focus primarily on creating and developing a high quality product or service

Question 12

1 positive and 1 negative of product orientation

Answer 12

+ve- allows focus on product quality and innovation

-ve- put customer needs second

Question 13

market orientation is

Answer 13

the business choses to design a product or service to meet requirements of customer preferences

Question 14

2 positives of market orientation

Answer 14

1. close fit to customer expectations

2. greater responsiveness to change in customer needs

Question 15

1 negative of market orientation

Answer 15

regular change in product appearance may leave customers confused

Question 16

4 types of primary research

Answer 16

observation
online surveys
face to face survey
focus group

Question 17

4 types of secondary research

Answer 17

government statistics
published market research reports
businesses own data
competitors data

Question 18

market segmentation is

Answer 18

dividing the market up into smaller sets of customers who have similar needs or interests

Question 19

market mapping is

Answer 19

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)

Question 20

product differentiation is

Answer 20

actual or perceived features of a service used to convince customers to buy