Topic 8: market and marking

Question 1

define market

Answer 1

• a place where buyers and sellers come together to exchange goods and services for money where the laws of supply and demand operate
• customers to whom your product is sold

Question 2

define marketing

Answer 2

the management process which identifies the wants of the consumers and anticipates their future wants.

Question 3

what are the objectives of marketing?

Answer 3

• to increase or maintain market share
• to increase sales revenue or profitability
• to target a new market or market segment

Question 4

how do businesses identify and meet the needs of customers?

Answer 4

businesses must:
* know its market or its customers to meet their demands
* identify the unique characteristics of that particular market
* adhere to charcteristics of a collective and individual nature

Question 5

define market segmentation

remember ‘grouping’

Answer 5

is when a business divides the market into groups of customers with similar needs and wants

Question 6

howw does a business divide a market into segments?

Answer 6

by :
product-
region- people from different countries and regions buy different products
lifestyle- a single person earning the same income as a married person with kids will spend their income differently
prupose- e.g. cars can be used by consumers for domestic and business use

Question 7

what is product orientation?

Answer 7

where the main focus of activity is on the product itself

Question 8

what is market orientation?

Answer 8

where the market research is carried out to find out customer wants before the product is developed and produced

Question 9

list the characteristics of market orientated businesses

Answer 9

• they identify the wants of customers now and in the future to produce the right goods which will sell and make a profit
• they are better able to survive as they are better prepared for changes in customers’ tastes
• take advantage of new market which will rise

Question 10

what are the characteristics of product orientated buusinesses?

Answer 10

• produce basic necesities required for living
• products may not have their own name or brand and are generally products consumers need to buy
• they produce firs, then try to find the market for it

Question 11

list advantages of market orientated businesses

Answer 11

• they are better able to survive as they are more prepared for changes in customers’ tastes
• they take advantage of new market which will rise
• they identify the wants of customers now and in the future to produce the right goods which will sell and make a profit