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Buisness > meeting customer needs (AI) > Flashcards

meeting customer needs (AI) Flashcards

1
Q

What is marketing?

A

Marketing is the process of targeting the right product at the right target market using the right combination of price, promotion, and place.

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2
Q

What are the steps in the marketing process?

A

1) Establish a marketing objective. 2) Gather, research, and analyze the market. 3) Devise and implement a marketing strategy. 4) Review the objective. 5) Repeat the cycle.

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3
Q

What is market saturation?

A

Market saturation refers to the degree of unsatisfied demand in a marketplace.

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4
Q

What is a saturated market?

A

A saturated market is one in which most customers who want the product already have it.

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5
Q

What is an unsaturated market?

A

An unsaturated market is one in which there is significant growth potential.

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6
Q

What is a mass market?

A

A mass market is a large market of customers where products are undifferentiated and broadly similar.

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7
Q

What are the advantages of mass markets?

A

1) Exploit economies of scale. 2) Marketing economies of scale. 3) Stable demand patterns. 4) High sales/profit.

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8
Q

What are the disadvantages of mass markets?

A

1) Not responsive to individual customer needs. 2) High competition. 3) Unique selling point (USP) required.

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9
Q

What is a USP?

A

A USP is a feature of a product that distinguishes it from all other competing products in a marketplace.

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10
Q

What is a niche market?

A

A niche market is a smaller section of a larger market that caters to specific customer needs.

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11
Q

What are the advantages of niche markets?

A

1) Less competition. 2) More tailored products. 3) Lower advertising costs.

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12
Q

What are the disadvantages of niche markets?

A

1) Higher price. 2) Difficult to get retailers to stock the product. 3) Vulnerable to market change.

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13
Q

What is price inelastic?

A

Price inelastic refers to consumers being very insensitive to changes in price.

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14
Q

What is price elastic?

A

Price elastic refers to consumers being very sensitive to changes in price.

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15
Q

What is market size?

A

Market size is the value or volume of sales generated in an industry in the course of a year.

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16
Q

What is market share?

A

Market share is the percentage of sales in a market accounted for by one firm or brand.

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17
Q

What is market growth?

A

Market growth is the percentage change in the value of sales generated in a market from one year to the next.

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18
Q

What is a brand?

A

A brand is a name, image, or logo that helps a product/service stand out from its competitors.

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19
Q

What is a dynamic market?

A

A dynamic market is a market that is constantly changing, capable of rapid growth, change, and decline.

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20
Q

What is competition?

A

Competition refers to the number of firms that operate in a market.

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21
Q

What is risk?

A

Risk refers to factors that are not expected but can be quantified.

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22
Q

What is uncertainty?

A

Uncertainty is being unsure about factors that influence sales/costs, making profit and growth predictions difficult.

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23
Q

What is product orientation?

A

Product orientation is when a business focuses on creating a high-quality product while possibly ignoring consumer preferences.

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24
Q

What does R&D stand for?

A

R&D stands for Research and Development.

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25
Q

In which markets does R&D work particularly well?

A

R&D works particularly well in technology-driven markets such as virtual reality, mobile phones, games consoles, and TVs.

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26
Q

What is a disadvantage of R&D?

A

A disadvantage of R&D is that there may not be a market to sell the new product to, potentially wasting millions on R&D.

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27
Q

What happens if a product developed through R&D does not succeed?

A

If the product does not succeed, the firm cannot recoup the money spent on R&D.

28
Q

What is market orientation?

A

Market orientation is where a business designs a product or service to meet customer preferences, focusing on what consumers want.

29
Q

What is a key advantage of market orientation?

A

A key advantage is that customer expectations are met because products are based on research indicating what customers want.

30
Q

What is a disadvantage of market orientation?

A

A disadvantage is that it can be time-consuming and expensive to conduct regular market research.

31
Q

What is market research?

A

Market research is the gathering of information on customers’ attitudes, behavior, and wants in relation to a product or service.

32
Q

What are the two types of market research?

A

The two types of market research are primary and secondary market research.

33
Q

What is primary market research?

A

Primary market research is first-hand research on the attitudes and buying intentions of actual or potential customers.

34
Q

What is quantitative primary market research?

A

Quantitative primary market research uses pre-set questions among a large sample size to provide statistically valid data.

Example: 56% of people said they would buy it.

35
Q

What is qualitative primary market research?

A

Qualitative primary market research is in-depth research into the attitudes and buying behavior of actual or potential customers.

36
Q

What is an advantage of qualitative primary market research?

A

It enables a business to gain an in-depth understanding of a consumer’s attitude to a product.

37
Q

What is a disadvantage of qualitative primary market research?

A

It is only conducted among a small group of respondents, leading to a small sample size.

38
Q

What is secondary market research?

A

Secondary market research is data that already exists and has been collected for a purpose.

39
Q

What is an advantage of secondary market research?

A

It is often free and easy to obtain.

40
Q

What is a disadvantage of secondary market research?

A

It can quickly become out of date.

41
Q

Why do firms conduct market research?

A

Firms conduct market research to identify and anticipate customer wants, quantify likely demand, and gain insight into consumer behavior.

42
Q

What is market segmentation?

A

Market segmentation is the process of dividing a market into smaller sets of customers that have similar needs and interests.

43
Q

What is a market segment?

A

A market segment is a small set of customers that have similar needs and wants.

44
Q

What is an advantage of market segmentation?

A

It allows for tailored products that match the specific needs of a market segment.

45
Q

What is a disadvantage of market segmentation?

A

It can lead to smaller volume sales, making it difficult to generate profit.

46
Q

What is market positioning?

A

Market positioning is where your product stands in relation to others offering similar products or services in the marketplace.

47
Q

What is market mapping?

A

Market mapping is a process that helps identify market positioning by creating a diagram based on two key features.

48
Q

What is product differentiation?

A

Product differentiation refers to the actual or perceived features of a product that convince customers to choose it over competitors.

49
Q

What is actual differentiation?

A

Actual differentiation is when there is a real difference between a firm’s product and competing products.

50
Q

What is psychological differentiation?

A

Psychological differentiation is when there is no real difference in function or quality, but consumers perceive the product as different.

51
Q

What is Product Differentiation?

A

The actual or perceived features of a product that a business uses to convince its customers to buy its product instead of those of competitors in the market.

52
Q

What are the two types of product differentiation?

A
  1. Actual differentiation 2. Psychological differentiation
53
Q

What is Actual Differentiation?

A

When there is an actual or real difference between the firm’s product and other competing products in the marketplace.

Example: Rolex (the materials are the best, better than any other watch company)

54
Q

What is Psychological Differentiation?

A

When there is no real difference between the business’ product in terms of function or quality, but consumers perceive the product to be superior to all other products available in the marketplace.

55
Q

Why do firms want to differentiate their products?

A

Consumers are more likely to buy from their brand than the competitors if the product is either actual or psychologically differentiated.

56
Q

What is value added?

A

Value added = selling price per unit - the cost of materials bought in.

57
Q

What is the advantage of higher value added?

A

It enables the firm to set a high selling price, which helps boost the business’ profit.

58
Q

What is premium pricing?

A

When a business sets a high selling price in a deliberate attempt to exude an image of luxury/superiority/quality.

Example: Louis Vuitton bags are premium priced.

59
Q

What are high profit margins?

A

The ability for successfully differentiated firms to set very high selling prices, enabling them to command high profit margins on each unit sold.

60
Q

What is a disadvantage of product differentiation?

A

There is a limit to how high a firm can force the selling price of a good.

61
Q

What is another disadvantage of product differentiation?

A

Costs may be higher due to the use of quality raw materials and components.

62
Q

What is Competitive Advantage?

A

A way to keep competitors at arm’s length over a sustained period.

63
Q

What are the two sources of competitive advantage?

A
  1. Be the lowest cost supplier 2. Be highly differentiated
64
Q

What does it mean to be the lowest cost supplier?

A

The firm that can produce goods most cheaply in a market, translating into the lowest selling prices in an industry.

Example: Aldi in the UK’s grocery market.

65
Q

What does it mean to be highly differentiated?

A

Achieving a level of differentiation that other firms in the industry have not managed to achieve, enabling a firm to command a premium price.

66
Q

What is an example of a highly differentiated firm?

A

Porsche has achieved the most highly differentiated status in the sports car market.

Buisness (10 decks)

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