theme 1 section 1-meeting customer needs mr smith

Question 1

what’s dynamic mean

Answer 1

change and evolve rapidly

Question 2

definition of market

Answer 2

all the buyers and sellers that trade a particular type of product in a particular place

Question 3

mass markets

Answer 3

aimed at larger groups
wide appeal
useful to a variety of people

Question 4

niche markets

Answer 4

aimed at specific group
segment
product specialised and has particular requirements

Question 5

sales volume

Answer 5

sales volume higher in mass market then niche market
market share higher in niche market
market size higher in mass market

Question 6

factors that make a business change

Answer 6

consumer preferences-fashion trends etc
innovation-new products emerge
some grow some decline
online shopping increasing
change in legislation-tax etc placed on products

Question 7

online retailing

Answer 7

selling products online via the internet

Question 8

adv of online retailing

Answer 8

businesses cost lower-dont have to pay for as much staff
lower costs, means lower priced products meaning profit
customers can order any time dont have to travel, convenient for consumer

Question 9

dis of online retailing

Answer 9

face more competition as customers can easily shop around
some like to see products face to face before buying them
cost of delivery

Question 10

what is market share

Answer 10

proportion of the total market that the business holds

Question 11

market size

Answer 11

total values of sales in a market

Question 12

branding

Answer 12

helps consumers differentiate a businesses’ product from that of its competitors

Question 13

direct competition

Answer 13

when two or more businesses sell similar products that appeal to same group of customers
e.g. Sainsburys and Tesco

Question 14

indirect competition

Answer 14

two or more businesses sell products that are different but competing for the same cutomers
e.g takeway restursnts italian food and chinese food

Question 15

marketing mix

Answer 15

product
place
price
promotion

Question 16

product

Answer 16

need to make sure product they provide is in good quality
product distinctive from others
unique appeal/lots of innovation

Question 17

place

Answer 17

easy for consumers to access their product
located where loads of people are

Question 18

promotion

Answer 18

have to try really hard for business to be noticed
lots of promotional campaigns and advertising
focus on branding and celebrity endorsement

Question 19

price

Answer 19

competitive pricing- prices based on competitors prices
cheaper then competition
sometimes use penetration pricing strategy-going from low to high
initially, prices set low to to tempt customers
slower price increased
usually, lots of competition means making cheaper price from the rest

Question 20

why new markets might have to change the ownship of their market

Answer 20

if loads of bigger markets already in same area, new business might struggle to survive as they dont have money to stand out
get investors to help raise funds
more likely to be limited company then sole trader or partnership
some big companies might need to change to get more market share e.g. private to public limited companies

Question 21

risk and uncertainty

Answer 21

risk-always chance something could go wrong
risks are controllable-thought out before decided
uncertainties-unexpected events-could happen but very hard to predict if or when might happen
usually external things that cant be controlled e.g. bad weather

Question 22

business product orientated

Answer 22

focuses more on products quality, design etc rather then what customers actually want
might use technology to develop new products
create new and innovative products on market in hope customer will buy them
e.g. apple always adapting and focusing on new functions-categorised as a product orientated business

Question 23

market orientated business

Answer 23

considered more modern and successful then product orientated businesses
focuses more on selling products that match consumers preferences rather then the product
considers products tailored to what customers want so often charges higher prices
lower risk strategy then price orientated as goes if consumers feedback

Question 24

what is market research

Answer 24

collection and analysis of market information

Question 25

needs

Answer 25

things consumer needs to survive
essential
such as food

Question 26

wants

Answer 26

things consumers choose to have/choose whether they buy such as jewerally

Question 27

what does market resaercbh help with

Answer 27

helps bsuiness identify what future needs/ wants could be
aloows business to predict how much demand there will be for its products
can use promotion on product to increase demand
learn more about how customers behave to a product
competiors may be doing better
may gain insight int aspects of business environemnt that could affect the market
SLEPT
social legal economic political and technological factors

Question 28

quantitaive

Answer 28

numerical statistics
facts and figures
multiple choice questionnaires a b or c
closed questions as have fixed answers

Question 29

qualalitive

Answer 29

opinions of consumers
involves questions that are open/not restricted like multiple choice

Question 30

adv of quanatitive data

Answer 30

statistically analsysed meaning quick and easy

Question 31

adv of quanatitive data

Answer 31

statistically analsysed meaning quick and easy

Question 32

adv of quantalative data

Answer 32

more flexibe
best market research=combination of both quantitive data and qualativa date

Question 33

primary market research

Answer 33

bsuiness gathers new data

Question 34

secondary market research

Answer 34

using data that’s already available/existing

Question 34

primary data examples

Answer 34

questionaries
surveys
observations(consumers watched in business environment to see behaviours)
focus groups(group of 8 people discuss there opinions on product)
test marketing-launching product in one region seeing how succesful to then launch acorss the country

Question 35

secondary data examples

Answer 35

data from governent reliable internet sources etc
much easier and quicker to hold tgeb primary data
may be out of date
used to get intial understanding of market
primary data used if any issues occur in business

Question 36

technology

Answer 36

many firms use ICT to help them with market research
makes it easier, cheaper and quicker
easier to reach wide sample of consumers
e.g websites social networking examples of technology

Question 37

segmentation

Answer 37

dividing up a market into groups of buyers-consumers in each segment share one or more characteristic
e.g age, gender, hobbie etc
segmentation helps business to traget their marketing towards specific groups of buyers
helps to find where needs and wants not being met

Question 38

differnt types of segments

Answer 38

demograhic-age.gender,class
geogrpahic-city,country,lifestyles etc
income-luxury aimed at higher income
behavioural-hobbies and interests e.g gym wanting protein meals

Question 39

bad things about market mapping

Answer 39

over simplify things too much
can be biased, used on a matter of opinion/ people may have differnt views on whether product is high in quality or not etc

Question 39

bad things about market mapping

Answer 39

over simplify things too much
can be biased, used on a matter of opinion/ people may have differnt views on whether product is high in quality or not etc

Question 40

what is a competitive advantage

Answer 40

condition that allows a firm to generate more sales and be more profitable to its rivals

Question 40

what is a competitive advantage

Answer 40

condition that allows a firm to generate more sales and be more profitable to its rivals

Question 41

ways to get a competeive advantage

Answer 41

lower costs from comoetitiors
generates more sales
product innovation-aim to be first in amrlet to bring out a unique producy to the maket
advertising and marketing-makes it more attractive to buyers,generate sales
prodcut difefrnetiation-bueinss distingusihes their products from comoetetors . creating unique selling point
good customer service-before, during and after oruchase important. polite efficient and knowlegable staff