meeting customers needs

Question 1

market

Answer 1

all buyers and sellers that trade particular type of product

Question 2

mass market

Answer 2

aimed at large groups of buyers
product has wide appeal
high sales volume
can achieve economies of scale
products cheaper to produce

Question 3

niche market

Answer 3

aimed at specific buyers
product specialised to meet particular requirements
more risky then mass market
narrower range of customers
larger market share

Question 4

market size

Answer 4

total value of sales
total volume of consumers

Question 5

market share

Answer 5

proportion of total market business holds

Question 6

branding

Answer 6

logo
differentiates product from competitors

Question 7

dynamic markets

Answer 7

adapt to change
change and evolve quickly

Question 8

reasons dynamic market will change

Answer 8

consumer preference-fashion and advancements in technology

innovation-new products emerge

ways people want to shop-online shopping

competitors leaving or enter market

changes in legislation-taxes placed on goods
e.g tax on sugary drinks

Question 9

online retailing

Answer 9

selling products via internet

adv
business costs lower-no physical shop or hire as many staff

allows them to charge lower prices

customers can order any time/anywhere

customers can easily compare prices

dis
more competition as can easily shop around

most customers like to see products before purchasing-especially luxury/expensive items

delivery costs

Question 10

direct competition

Answer 10

when two or more businesses sell similar products to appeal same group

e.g TESCO, ASDA

Question 11

indirect competition

Answer 11

two or more products sell different products but to same target customers

e.g takeaways, chinese, indian

Question 12

marketing mix

Answer 12

product
place
price
promotion

Question 13

risk

Answer 13

something that goes wrong
controllable

Question 14

uncertainties

Answer 14

unexpected events
could happen but hard to predict
uncontrollable

e.g hurricane

Question 15

product orientation

Answer 15

focus on product rather then what consumers want

use technology to develop new products
and functions they think consumers will like

create new innovative products and hope consumers will like them

e.g APPLE

Question 16

market orientated business

Answer 16

business focuses more on selling products that match consumers preferences

invests in market research

finds out what consumers want

more modern approach

less risky then product orientation

Question 17

market research

Answer 17

collection and analysis of market information

Question 18

quantitive market research

Answer 18

numerical
facts and figures
multiple choice questions
e.g pick a b or c

Question 19

qualitative market research

Answer 19

based on opinions of consumers
open questions
answer isn’t restricted

Question 20

adv of quantitative market research

Answer 20

easy and quick to analyse

Question 21

dis of quantitative market research

Answer 21

unable to elaborate

Question 22

adv of qualitative market research

Answer 22

more informative as answers are flexible

Question 23

primary market research

Answer 23

where business gathers new data

use questionaries or surveys

Question 24

secondary market research

Answer 24

using data that’s already available

Question 25

adv of primary market research

Answer 25

specific to the purpose its needed for exclusive-competitors can't benefit from it

Question 26

dis of primary market research

Answer 26

labour intensive expensive slow

Question 27

adv of secondary data

Answer 27

easier faster cheaper

Question 28

dis of secondary market research

Answer 28

could be unsuitable may have errors may be out of date

Question 29

representative sample

Answer 29

samples of people used rather then whole market needs to represent the market be similar to target audience e.g. age gender

Question 30

adv of representative sample

Answer 30

keeps costs down saves time and resources

Question 31

market research needs to avoid bias

Answer 31

questionnaires and surveys should avoid biased questions e.g. questions phrased to lead respondent to an answer they want interview bias from personality- there opinion can influence interviewee responder bias-response is not true answer want to be put in positive light saw what think interview want to hear

Question 32

segmentation

Answer 32

dividing market into groups of buyers- consumers in each segment share characteristics e.g. age, income

Question 33

market segments

Answer 33

Demographic segments-age gender income segments-luxury aimed at high income, own brand aimed at low income geographical segments-neighbourhood city behavioural segments-lifestyle hobbies and interest e.g. gym high protein products acronym:DIGB

Question 34

market map

Answer 34

shows extremes for two measures e.g. low price v high price laid out as matrix

Question 35

adv of market maps

Answer 35

can reveal gaps in market-can be filled by newer businesses can show a businesses closest competitors show how much customers expect to pay help business with pricing strategy

Question 36

dis of market mapping

Answer 36

simplify things too much subjective/based on opinions what someone associates as being high quality other may not

Question 37

competitive advantage

Answer 37

allows firm to generate more sales and be more profitable then rivals

Question 38

ways to achieve competitive advantage

Answer 38

lower costs, charging lower prices then competitors product innovation-first in the market to introduce new markets