meeting customer needs defenitions Flashcards
What is the defenition of marketing?
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)
What is the deffenition of a mass market
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).
Deffenition of the purchasing EOS (economies of scale)
Discounts for buying in bulk
Defenition of marketing EOS (economies of scale)
Cost of advertising and promotion
what is the defenition of a USP (unique selling point / proposition)
A USP is a feature of a product that distinguishes it from all other competing products in a market place.
what is the deffenition of a niche market
A smaller section of a larger market (e.g. almond milk).
What is the defenition of price elastic
Consumers are very sensitive to changes in price
Defenition of price inelastic
consumers are very insensitiver to changes in price. If the price goes up, customers are still likely to buy it.
Defenition of price elastic
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.
Defenition of market share
percentage of sales in a market that are accounted for by one firm or brand.
segmentation
a market is broken up into small sections that contain buyers who share similar characteristics.
gap in the market
it is a need or a want that people have that currently isn’t being met by wxisting products or services.
market size
the value or volume of sales generated in an industry in the course of a year.
Market size by value
measure of the market size by value of the sales generated over the course of a year
market size by volume
measure of the quantity of goods sold over the course of a year
market growth
the percentage change in the value of sales generated in a market from one year to the next.
Affluence
how much income an average family has to spend.
dynamic market
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.
market saturation
refers to the degree of unsatisfied demand in a market place.
Saturated market
one in which most customers who want the product already have it.
Unsaturated marked
one in which there is significant growth potential
Unsaturated marked
one in which there is significant growth potential
brand
brand is a name, image, or logo which helps one product/service stand out from its competitors.
Competition
Competition refers to the number of firms that operate in a market.
Incumbent firms
firms that already exist within a market.
Risk
Risks are factors that are not expected but can be quantified.
Quantified
To put a mathematical / numerical value on something.
Uncertainty
Being unsure about the factors that influence sales/costs and therefore unable to predict profit and growth
Product Orientated
Where a business focuses on creating and developing a high quality good or service but perhaps ignoring consumer preferences and priorities
Recoup
To get back something.
R&D
The development of new technologies or new product innovations
market orientation
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.
Primary research
this is first hand research on the attitudes and buying intentions of actual or potential customers.
Qualitative primary market research
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.
Qualitative primary market research
indepth research into the attitudes and buying behaviour of actual and potential customers.
population
everyone who is a potential customer of the firm.
sample
small group of consumers, whose views are thought to represent the population’s views as a whole.
Secondary market research
it data that already exists
retail audits
business analyses it’s own figures to establish which product lines are selling well and which are not.
Market segmentation
it is the process of dividing a market into smaller sets of customers
market segment
A small set of customers that have similar needs and wants.
socio economic group
a way an area is split. this is done via analysing occupation of the head of the household.
market positioning
where your product stands in relation to others offering similar products or services in the marketplace.
market mapping
Helps to identify market positioning. It involves creating a diagram that identifies all the products in the market using 2 key features.
product differentiation
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.
actual differentiation
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)
psychological differentiation
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.
Competitive advantage
A way to keep competitors at arm’s length over a sustained period.
