Meeting customers needs 1.1 Flashcards
What is marketing
Targeting the right audience using the combination of the 4ps
Give examples of marketing objectives
- develop brand loyalty
- gain high market share
- target new audience
- grow digital presence
What is a brand
An image that distinguishes one company from another
Mass marketing advantages
- more potential customers = more sales
- economies of scale
- mass production - lower costs
Mass marketing negatives
- more competition
Harder to stand out
Niche marketing advantages
- charge premium price due to PD
- less competition
Niche marketing negatives
- expensive as research needs to be in depth and accurate
- do not benefit from economies of scale
- vulnerable to competition if one starts to dominate
Market share
A proportion of a businesses sales as a percentage of all the sales within that one market
The difference between risk and uncertainty
Risk is the possibility of something going wrong and uncertainty is when there is a lack of information
Market orientation
Businesses are heavily focused on consumer needs, decision-making is also influenced by this
Product orientation
The business focuses on what it does best For example high-quality products or Innovative products
What is market research
Gathering information about consumers competitors and distributed within a market
Examples of primary research
Retail research and observation
Examples of secondary research
The Internet, trade press, government produce data
Advantages of secondary research
Cheap
Usually based on actual figures
Good overview of market
Disadvantages of secondary research
Outdated
Not tailored for your specific purpose
Some can be expensive
Advantages of primary research
Tailor questions specifically adapted to objectives
Up-to-date information
Can assess psychology of a consumer
Disadvantages of primary research
Can be expensive
Risk of consumer bias
Qualitative research
Research into the motivations behind attitudes and buying habits of customers - more Opinionated
Quantitative research
Preset questions on a large enough sample to provide statistically valid data
How can IT be used to support market research
Websites, social media, databases
Market positioning
A customers perception of a business Created by our brands or features that attracts customers
Examples of product differentiation
- Unique design or function
- quality
- niche product
