meeting customer needs - theme 1 (book1) Flashcards
- mass and niche markets - dynamic markets - how competition affects the market - the difference between risk and uncertainty
what is a niche market?
where a business targets a smaller segment of a larger market to target specific needs and wants
what is a mass market?
where a business sells into the largest part of the market where similar products are offered by competitors
in a mass market _______ form the _______ in a market
in a mass market customers form the majority in a market
what is a market?
a place where buyers and sellers come together exchange goods and services
mass _____ is used to _______ products in a ______market
mass media is used to advertise products in a mass market
in a mass market, the market is not ______
in a mass market the market is not segmented
what is the aim of a niche market?
to identify small, unsatisfied gaps in the market
in a niche market promotional activities are targeted at a small ______ of the ______ market
in a niche market promotional activities are targeted at a small subsection of the whole market.
niche market can often charge what type of prices?
higher prices
what is market size?
the total value or volume of sales in the market
number of units sold x price
what is market share?
the proportion of total sales a firm has
sales of one firm/total market sales x 100
a brand is a ______ produced by one business using a ______ name. branding involves the creation of an ______ for the business that ______ the firm from other firms. a brand is a _____ that cannot be copied.
a brand is a product produced by one business using a specific name. branding involves the creation of an identity for the business that distinguishes the firm from other firms. a brand is a trademark that cannot be copied.
what can branding add to a product that enables them to charge higher products and why?
branding can add value to a product enabling businesses to charge higher prices leading to brand loyalty and repeated purchases.
what is brand extension?
adding new product ranges to a recognised brand name
what is brand value?
when the brand name adds value to the product
a dynamic market is a ______ which is likely to _______
a dynamic market is a market which is likely to change
what are 4 types of changes in a dynamic market?
1) changes in technology
2) changes in social trends
3) legislation changes
4) innovation and market growth
online retailing is the process of _____ and _____ gods and services over the _____
online retailing is the process of buying and selling goods and services over the internet
what is market growth?
the percentage increase in the size of the market
change in size of market/original size x 100
innovation is when a _____ idea or _____ is launched into a market
innovation is when a a new idea or invention is launched into a market
what is degree of competition?
the level of competition which a business is subject to
what are 3 ways competition affects the market?
battle for market share, pricing, battle for competitive advantage
competitive advantage is the _____ of a business to add ____ value for its ____ than it’s _____
A competitive advantage is the ability of a business to add more value for its customers than it’s rivals.
why is competition beneficial for consumers?
consumers have lots of choice as there are many businesses selling similar products
risk is when _____ or _____ take action where the _____ are _____.
risk is when owners or firms take action where the outcomes are unknown
uncertainty is when _____ which are beyond the control of the business can have an _____ on the market which can lead to ______
uncertainty is when events which are beyond the control of the business can have an impact on the market which can lead to consequences.
market ______ is when a business ______ products based on ______ needs and______.
market orientation is when a business creates products based on customer needs and wants.
brand _____ is when a customer _______ to purchase from the _____ brand ______ times despite _______ offering ______ products.
brand loyalty is when a customer continues to purchase from the same brand multiple times despite competitors offering similar products.
