T1: Meeting Customer Needs

Question 1

What is marketing?

Answer 1

Selling things that don’t come back to the people who do

Question 2

B2B

Answer 2

Business to business

Question 3

B2C

Answer 3

Business to customers

Question 4

Niche market:

Answer 4

A smaller segment of a larger market

Question 5

Niche market features:

Answer 5

• small volume sales
• cost per unit high
• premium prices
• unique product
• limited availability

Question 6

What is a mass market?

Answer 6

Devising products with mass appeal and promoting them to a variety of consumers

Question 7

What is a market?

Answer 7

A meeting place between customers and suppliers where they come together to exchange goods& services

Question 8

Mass market features:

Answer 8

• low prices
• wide availability
• extensive promotion
• high volume sales

Question 9

Dynamic markets

Answer 9

Markets that are constantly changing

Question 10

Online retailing

Answer 10

E.g) e-tailing

Question 11

Market size

Answer 11

Measured by calculating the total sales of all businesses in the market. Measured in value(£) or volume(no of units).

Question 12

Sales volume

Answer 12

The number of units (products or services) provided by the business

Question 13

Sales value

Answer 13

The value of all the products or services sold by a business

Question 14

Market share

Answer 14

Sales of 1 business in the market
——————x100
Total market sales

Question 15

Market growth

Answer 15

New market-old market
——————— X100
Old market .

Question 16

Market orientated

Answer 16

A market oriented business has its focus purely on the needs of the customer

Question 17

Product orientated

Answer 17

Concentrates on the product instead of the customers eg) the products quality, features, performance

Question 18

Primary research

Answer 18

Information that does not already exist and is collected through the use of field research

Question 19

Secondary research

Answer 19

Data that already exists and can be found by books or the Internet

Question 20

Quantitative

Answer 20

Collects data in the form of numbers

Question 21

Qualitative

Answer 21

Explores people’s opinions, usually through focus groups

Question 22

Sampling

Answer 22

A smaller group taken from a population

Question 23

Bias

Answer 23

A factor that causes data to be weighted towards one side which leads to misleading results

Question 24

Market segmentation

Answer 24

Splitting the market up into different consumers eg) age, gender, social class

Question 25

Competitive advantage

Answer 25

An advantage a business has that allows it to perform better than its rivals

Question 26

Branding

Answer 26

A name, symbol or design that identifies one companies product to another

Question 27

Unique selling point (USP)

Answer 27

The product has something that the others do not have

Question 28

Product differentiation

Answer 28

The extent to which consumers perceive one product to be different form its rivals

Question 29

Added value

Answer 29

The difference between the cost of raw material and the selling price