meeting customers needs Flashcards
market
all buyers and sellers that trade a product
mass market
aimed at large groups of buyers
product has wide appeal
high sales volume
can achieve economies of scale
products cheaper to produce
adv and dis of mass markets
adv-achieve EOS-cheaper to produce products meaning can sell at cheaper prices
dis-hard to raise enough capital
lots of competition
niche market
aimed at specific buyers
product specialised to meet particular requirements
more risky then mass market
narrower range of customers
larger market share
adv and dis of niche markets
adv-can charger premuim prices as offering something unquie
dis-can easily be effected by changes in consumer trend s
more risky as narrower market
less likely to achieve eos
market size
total value of sales
total volume of consumers
market share
proportion of total market business holds
branding
logo
differentiates product from buyers
customers can easily recognise
mass markets more businesses selling simialr products so branding is important
dynamic markets
adapt to change
change and evolve quickly
reasons why dynamic market may change
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
study tip: SICCL
definition of online retailing
selling products via internet
adv of online retailing
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 of online retailing
more competition as can easily shop around
most customers like to see products before purchasing-especially luxury/expensive items
delivery costs
direct competition
when two or more businesses sell similar products to appeal same group
e.g TESCO, ASDA
indirect competition
two or more products sell different products but to same target customers
e.g takeaways, chinese, indian
marketing mix
place
price
product
promotion
how does competition influence on the decisions a firm makes about its marketing mix
product-means product they provide must be of a good quality
if not, customers can easily switch
need to make sure their products are distinctive from other competition
promotion-have to try hard to get their product noticed and encourage customers to buy them over competitor products
lot of promotional campaigns, adversting in competitve markets
may focus on branding
may use celebrity endorsement to try to get customers to buy products
pricing-may us competitive pricing
penetration pricing-low to high
price skimming-high to low
place-need to make sure its easy for customers to access their product
e.g lots of business selling online
risk
taking risk, probabilities of different outcomes are known
something that goes wrong
controllable
uncertainties
unexpected events
could happen but hard to predict
uncontrollable
e.g hurricane
product orientation
ocus 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
market orientated business
usiness 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
market research
collection and analysis of market information
quantitative market research
numerical
facts and figures
multiple choice questions
e.g pick a b or c
qualitative market research
based on opinions of consumers
open questions
answer isn’t restricted
adv of quantitative market research
easy and quick to analyse
dis of quantitative market research
unable to elaborate
adv of qualitative market research
more informative as answers are flexible
primary market research
where business gathers new data
questionnaires
surveys
observations
sampiling
