Theme 1.1 Meeting customers needs

Question 1

How is market size calculated?

Answer 1

The total sales of all businesses in the market

Question 2

What are the 2 ways market size is measured?

Answer 2

Value (number of units x price)

Volume - The physical quantity of products/units which are sold

Question 3

Market growth?

Answer 3

The increase in size, value or volume over time which is a positive sign for an economy as it suggests the economic landscape is improving

Question 4

Market share?

Answer 4

The percentage of the markets sales that a company owns

Question 5

Formula for market share?

Answer 5

Sales of business/total market sales X 100

Question 6

Niche Market?

Answer 6

When a business targets a smaller segment of a larger market, where customers have specific needs and wants

Question 7

Mass Market?

Answer 7

When a business targets the largest part of the market, where there are many similar products offered by competitors

Question 8

3 things that marketing involves?

Answer 8

Identifying the wants and needs of customers

Persuading customers to buy products

Charging the right price

Question 9

3 key features of a mass market?

Answer 9

Customers needs and wants are more general and less specific

High production output which results in economies of scale

Huge number of customers in these markets

Question 10

3 aims of Mass Marketing

Answer 10

Exploit economies of scale to earn higher profits

Create products with universal appeal

Leadership of the largest market

Question 11

3 benefits of a niche market?

Answer 11

Customer Loyslty
Less competition
Premium Price due to USP

Question 12

3 drawbacks of niche market?

Answer 12

Less demand
Don’t benefit from EOS
Vulnerable to changes in the market

Question 13

What is a market?

Answer 13

Any place that buyers and sellers will come together to exchange goods and services.

Question 14

What is a brand?

Answer 14

Creating an identity for a business to be distinguished by

Question 15

What can branding do to a product?

Answer 15

Add value allowing firms to charge higher prices.

Question 16

4 forms of brands?

Answer 16

Logo

Symbols

Celebrity endorsement

Images

Question 17

3 benefits to a business of building a brand?

Answer 17

Helps build loyalty and repeat purchase

Adds value to a product

Can easily add new product range to a recognised brand

Question 18

4 reasons that dynamic markets are a thing?

Answer 18

Social trends

Changes in technology

Competitive environment

Consumer tastes

Question 19

What is online retailing?

Answer 19

The process of buying and selling goods and services over the internet (e-commerce)

Question 20

What are 2 conveniences that online retailing gives to the consumer?

Answer 20

Can shop 24/7

Dont need to travel/pay parking costs

Question 21

3 ways that competition affects the market?

Answer 21

The price a business is able to charge

Availability of substitutes

Ability of new firms to enter the market

Question 22

What is the difference between risk and uncertainty?

Answer 22

Risk is possible to add probability and it is measurable.
However, uncertainties are not possible to add probability and it is not measurable

Question 23

What is market orientation?

Answer 23

An outward looking approach to a new product development where the key focus is on what products the consumer wants

Question 24

2 benefits of market orientation?

Answer 24

Reduces the risk of new product development

Business will concentrate on understanding the needs of the consumer then adapting the products to meet these needs

Question 25

3 limitations of market research?

Answer 25

Bias May not be accurate data Financial costs

Question 26

3 types of sampling?

Answer 26

Random Quota - Segmented into groups e.g. 50% males, 60% under 20 Stratified - A sub group is chosen e.g. 16-18 year olds, then any member of that population has an equal chance of being chosen.

Question 27

What is product orientation?

Answer 27

A product development stratergy where the key focus is on creating the best quality products which the businesses belives will naturally attract customers e.g. Apple

Question 28

2 features of product orientation?

Answer 28

Most common with technologically advanced products where the consumer does not have the skills to realise that the product could exist or that they would want it. Business will concentrate on producing high quality products and then look to create a market for them later

Question 29

3 things that the value of sampling will depend on?

Answer 29

sampling technique used how it was carried out size of the sample

Question 30

3 uses of ICT to support market research?

Answer 30

Websites - analytics monitor number, frequency and timings of visits Social networking (media) - likes/dislikes, reviews, Databases - Data mining, trends

Question 31

What is market positioning?

Answer 31

When a product is placed in the market relative to its competitors

Question 32

4 influences of a products market positioning?

Answer 32

Internal constraints e.g. budgets Internal strengths e.g. creativty and innovation Market conditions e.g. amount of competition External environment e.g state of economy

Question 33

What is market mapping?

Answer 33

A technique that enables businesses to display the perceptions of customers e.g. it may compare the price of a good with the quality of that good.