theme 1

Question 1

1.1 define market vs marketing

Answer 1

market- where buyers and sellers meet

marketing- communication about your product/service

Question 2

1.1 define niche vs mass marketing

Answer 2

niche- small segment of a larger market, products have high levels of differentiation

mass- selling into the largest part of the market, competitors sell similar products

Question 3

1.1 what are some benefits of mass market

Answer 3

• highly profitable due to high sales volume
• can benefit from economies of scale due to high levels of output
• universal appeal

Question 4

1.1 what are some benefits and drawbacks of niche market

Answer 4

b: less competition
- higher profit margin per item
- customer loyalty

d: lack of economies of scale
- attracts competition if successful
- vulnerable to market changes

Question 5

1.1 give examples of reasons markets are dynamic

Answer 5

• customers tastes and preferences change
• impact of tech on what customers buy and how they buy
• impact of new market entrants

Question 6

1.1 define innovation and what is product vs process innovation

Answer 6

putting a new idea or approach into action

product: launching new/improved products
process: finding better ways of producing existing products or delivering services

Question 7

1.1 what are some advantages of product innovation

Answer 7

• can charge higher prices= profit
  -improve competitiveness
• enhanced reputation
• build earlier customer loyalty

Question 8

1.1 what are some advantages of process innovation

Answer 8

• reduces costs
• more responsive customer service
• improved quality

Question 9

1.1 define market research

Answer 9

act of gathering information about customers’ needs and preferences to reduce risk of failure

Question 10

1.1 what is product orientation

Answer 10

an approach where businesses focus on their products- developing products bases on what its good at doing

Question 11

1.1 what is market orientation

Answer 11

an approach where businesses prioritise needs and desires of consumers to create products and services that satisfy them

Question 12

1.1 define market segmentation

Answer 12

dividing a market into parts that reflect customer needs and wants. e.g age, gender, income

Question 13

1.1 what are some benefits of market segmentation

Answer 13

-helps with new product development
- better matching of customer needs
- allows businesses to grow their share of the market

Question 14

1.1 what are some drawbacks of market segmentation

Answer 14

• markets are dynamic so change rapidly
• data may not always be available or reliable

Question 15

1.1 what is market mapping

Answer 15

a diagram with two axis that can identify products competitors offer and find gaps in the market

Question 16

1.1 what are advantages of using market mapping

Answer 16

• can analyse competitors to see where to launch products
• helps spot gaps in the market

Question 17

1.1 what are drawbacks of market mapping

Answer 17

• not a guaranteed success
• juts because there’s a gap in the market doesn’t mean there’s demand for the product

Question 18

1.1 what is added value and why is it important

Answer 18

the difference between price of raw materials and selling price.

adding value pays wages for workers. without workers there are no products

Question 19

1.1 what are some ways a business can add value to a product

Answer 19

• convenience
  -high quality service
• brand name
• USP

Question 20

1.1 what are benefits of added value

Answer 20

• charge higher price
• USP from competitors
• focus on target Market

Question 21

1.1 how does competition affect a business

Answer 21

• less demand for a product
• lower income due to costs for advertising

Question 22

1.1 why is market research important

Answer 22

gives insight into demand and helps spot opportunities and threats