meeting customer needs questions Flashcards
what is the difference between Niche and Mass markets
A niche market is a small section of a mass market focusted on only 1 type of cutomer. A mass market is large and focuses of a wide range of customers. Mass market products also have lower prices than niche market products
Why is a USP (unique selling poiny / proposition) required in mass markets and is it a dissadvatage or advantage?
dissadvantage
is helps the product stand out from the large range of similar / competing products and attract cutomers.
Why are mass markets not responsive to individual customer needs
they cant be tailored to suit a specific customer taste or requirement as the cost of production increases and it takes longer to produce
why are mass markets highly competative
many large firms enter as there is lots of money to be made and it it highly profitable.
why is exploiting EOS (purchasing and marketing) an advantage of mass marketing
They lower the cost of production of the product
why is stable demand patterns an advantage of mass markets
it allows forecasting scales relativley simple as the same large group of consumers typicall repurchase every week/month so scale patterns are relativly stable giving the firms certainty.
why is high sales/profit an advantage in mass markets
the sales and profit will typically be high as thousands / millions of customers will be serverd. But this makes mass markets attractive.
what does the process of marketing tell us?
It tells us marketing is a very scientific process as you have to research, analyse and map out a plant - everythign is backed up by evidence.
why is less competition in niche markets an advantage?
large firms are not attracted so niche firms face less competition allowing for more opportunities to potentially grow and expand operations.
in niche markets why are more tailored products an advantage
it enables niche market firms to attract enough customers to produced healthy sales and profits.
why do niche markets have lower advertising costs. Is it and advantage of dissadvantag?
advantage
they have relativly small customer base often concentrated in the local area so expensive nationwide promtion is unneciar. It lowers adverting costs (and hence overall costs of production)
why do niche markets have higher prices
they cant exploit EOS as they have relativly small amount of cutomers so the average cost of production will be higher which implies higher prices will need to be charged to make a profit.
why do niche manufacturors (producers) find it hard to get retailors to stock their products?
Retailors will be concernced they are not able to sell enough units of the niche product due to the small cutomer base and would rather stock a well known mass market product that would earn them much more money.
why are niche markets vunerable to market change
they only sell one or two product lines so if preferences or tastes change the pridcuer will have no other products to fall back on
why are customers in niche markets price inelastic
if you are looking for something specific, there may be a few firms that offer that product so if one raises prices customers may still be willing to pay it as you can easily find it elsewhere.
