meeting customer needs defenitions

Question 1

What is the defenition of marketing?

Answer 1

The process of targeting the right product at the right target market using the right combination of price, promotion and place (right audience, how best to reach said audience and best price)

Question 2

What is the deffenition of a mass market

Answer 2

Mass Markets is a large market of customers where products are undifferentiated (this means that all products sold in a mass market are broadly similar to each other). The business sells products and services to suit a large number of consumers e.g. milk, toothpaste, mobile phones, food. (huge number of people who are buying the product).

Question 3

Deffenition of the purchasing EOS (economies of scale)

Answer 3

Discounts for buying in bulk

Question 4

Defenition of marketing EOS (economies of scale)

Answer 4

Cost of advertising and promotion

Question 5

what is the defenition of a USP (unique selling point / proposition)

Answer 5

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

Question 6

what is the deffenition of a niche market

Answer 6

A smaller section of a larger market (e.g. almond milk).

Question 7

What is the defenition of price elastic

Answer 7

Consumers are very sensitive to changes in price

Question 8

Defenition of price inelastic

Answer 8

consumers are very insensitiver to changes in price. If the price goes up, customers are still likely to buy it.

Question 9

Defenition of price elastic

Answer 9

consumers are very sensitiver to changes in price. If price goes up or if one firm lowers their prices customers are more likely to find a firm with lower prices or not buy the product.

Question 10

Defenition of market share

Answer 10

percentage of sales in a market that are accounted for by one firm or brand.

Question 11

segmentation

Answer 11

a market is broken up into small sections that contain buyers who share similar characteristics.

Question 12

gap in the market

Answer 12

it is a need or a want that people have that currently isn’t being met by wxisting products or services.

Question 13

market size

Answer 13

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

Question 14

Market size by value

Answer 14

measure of the market size by value of the sales generated over the course of a year

Question 15

market size by volume

Answer 15

measure of the quantity of goods sold over the course of a year

Question 16

market growth

Answer 16

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

Question 17

Affluence

Answer 17

how much income an average family has to spend.

Question 18

dynamic market

Answer 18

a market that is constantly changing - it can grow, change and decline very quickly. E.g. social media. You don’t really know what is going to happen. E.g. social media.

Question 19

market saturation

Answer 19

refers to the degree of unsatisfied demand in a market place.

Question 20

Saturated market

Answer 20

one in which most customers who want the product already have it.

Question 21

Unsaturated marked

Answer 21

one in which there is significant growth potential

Question 22

Unsaturated marked

Answer 22

one in which there is significant growth potential

Question 23

brand

Answer 23

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

Question 24

Competition

Answer 24

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

Question 25

Incumbent firms

Answer 25

firms that already exist within a market.

Question 26

Risk

Answer 26

Risks are factors that are not expected but can be quantified.

Question 27

Quantified

Answer 27

To put a mathematical / numerical value on something.

Question 28

Uncertainty

Answer 28

Being unsure about the factors that influence sales/costs and therefore unable to predict profit and growth

Question 29

Product Orientated

Answer 29

Where a business focuses on creating and developing a high quality good or service but perhaps ignoring consumer preferences and priorities

Question 30

Recoup

Answer 30

To get back something.

Question 31

R&D

Answer 31

The development of new technologies or new product innovations

Question 32

market orientation

Answer 32

a business chooses to design a product or service to meet the requirements of customer preferences. It focuses on what the consumers want. They identify and meet the needs of the customers which are often changing.

Question 33

Primary research

Answer 33

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

Question 34

Qualitative primary market research

Answer 34

the uses of pre set questions amongst a sample size that is large enough to provide statistically valid data.You can always put a numerical result to the research outcome.

Question 35

Qualitative primary market research

Answer 35

indepth research into the attitudes and buying behaviour of actual and potential customers.

Question 36

population

Answer 36

everyone who is a potential customer of the firm.

Question 37

sample

Answer 37

small group of consumers, whose views are thought to represent the population’s views as a whole.

Question 38

Secondary market research

Answer 38

it data that already exists

Question 39

retail audits

Answer 39

business analyses it’s own figures to establish which product lines are selling well and which are not.

Question 40

Market segmentation

Answer 40

it is the process of dividing a market into smaller sets of customers

Question 41

market segment

Answer 41

A small set of customers that have similar needs and wants.

Question 42

socio economic group

Answer 42

a way an area is split. this is done via analysing occupation of the head of the household.

Question 43

market positioning

Answer 43

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

Question 44

market mapping

Answer 44

Helps to identify market positioning. It involves creating a diagram that identifies all the products in the market using 2 key features.

Question 45

product differentiation

Answer 45

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.

Question 46

actual differentiation

Answer 46

when there is an actual or real difference between the firm’s product and other competing products in the marketplace. E.g. rolex (the materials are the best, better than any other watch company)

Question 47

psychological differentiation

Answer 47

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. This is achieved through clever marketing.

Question 48

Competitive advantage

Answer 48

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