meeting customer needs - theme 1 (book1)

Question 1

what is a niche market?

Answer 1

where a business targets a smaller segment of a larger market to target specific needs and wants

Question 2

what is a mass market?

Answer 2

where a business sells into the largest part of the market where similar products are offered by competitors

Question 3

in a mass market _______ form the _______ in a market

Answer 3

in a mass market customers form the majority in a market

Question 4

what is a market?

Answer 4

a place where buyers and sellers come together exchange goods and services

Question 5

mass _____ is used to _______ products in a ______market

Answer 5

mass media is used to advertise products in a mass market

Question 6

in a mass market, the market is not ______

Answer 6

in a mass market the market is not segmented

Question 7

what is the aim of a niche market?

Answer 7

to identify small, unsatisfied gaps in the market

Question 8

in a niche market promotional activities are targeted at a small ______ of the ______ market

Answer 8

in a niche market promotional activities are targeted at a small subsection of the whole market.

Question 9

niche market can often charge what type of prices?

Answer 9

higher prices

Question 10

what is market size?

Answer 10

the total value or volume of sales in the market
number of units sold x price

Question 11

what is market share?

Answer 11

the proportion of total sales a firm has
sales of one firm/total market sales x 100

Question 12

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.

Answer 12

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.

Question 13

what can branding add to a product that enables them to charge higher products and why?

Answer 13

branding can add value to a product enabling businesses to charge higher prices leading to brand loyalty and repeated purchases.

Question 14

what is brand extension?

Answer 14

adding new product ranges to a recognised brand name

Question 15

what is brand value?

Answer 15

when the brand name adds value to the product

Question 16

a dynamic market is a ______ which is likely to _______

Answer 16

a dynamic market is a market which is likely to change

Question 17

what are 4 types of changes in a dynamic market?

Answer 17

1) changes in technology
2) changes in social trends
3) legislation changes
4) innovation and market growth

Question 18

online retailing is the process of _____ and _____ gods and services over the _____

Answer 18

online retailing is the process of buying and selling goods and services over the internet

Question 19

what is market growth?

Answer 19

the percentage increase in the size of the market
change in size of market/original size x 100

Question 20

innovation is when a _____ idea or _____ is launched into a market

Answer 20

innovation is when a a new idea or invention is launched into a market

Question 21

what is degree of competition?

Answer 21

the level of competition which a business is subject to

Question 22

what are 3 ways competition affects the market?

Answer 22

battle for market share, pricing, battle for competitive advantage

Question 23

competitive advantage is the _____ of a business to add ____ value for its ____ than it’s _____

Answer 23

A competitive advantage is the ability of a business to add more value for its customers than it’s rivals.

Question 24

why is competition beneficial for consumers?

Answer 24

consumers have lots of choice as there are many businesses selling similar products

Question 25

risk is when _____ or _____ take action where the _____ are _____.

Answer 25

risk is when owners or firms take action where the outcomes are unknown

Question 26

uncertainty is when _____ which are beyond the control of the business can have an _____ on the market which can lead to ______

Answer 26

uncertainty is when events which are beyond the control of the business can have an impact on the market which can lead to consequences.

Question 27

market ______ is when a business ______ products based on ______ needs and______.

Answer 27

market orientation is when a business creates products based on customer needs and wants.

Question 28

brand _____ is when a customer _______ to purchase from the _____ brand ______ times despite _______ offering ______ products.

Answer 28

brand loyalty is when a customer continues to purchase from the same brand multiple times despite competitors offering similar products.