Unit 10 Flashcards
Q1. What is a customer base?
A1. A customer base refers to the group of customers a business sells its products to.
Q2. What is a market?
A2. A market encompasses all customers and consumers who are interested in buying a product and have the financial resources to do so.
Q4. What is a customer?
A4. A customer is an individual or business that buys goods and services from a business.
Q3. What is a target market?
A3. A target market consists of individuals or organizations identified by a business as the customers or consumers of its products.
Q5. What is a consumer?
A5. A consumer is the final user of a product.
Q6. What are consumer markets?
A6. Consumer markets are markets for goods and services bought by the final customer.
Q8. What is the business environment?
A8. The business environment is the combination of internal and external factors that influence the operations of a business.
Q7. What are industrial markets?
A7. Industrial markets are markets for goods and services bought by other businesses to use in their production process.
Q9. What is free trade?
A9. Free trade refers to the absence of barriers that might prevent trade between different countries.
Q10. What is niche marketing?
A10. Niche marketing involves developing exclusive products for a small segment of the market.
Q11. What is mass marketing?
A11. Mass marketing involves selling a common, same product to the entire market.
Q12. What is a market segment?
A12. A market segment is a part of the whole market in which consumers have specific characteristics.
Q14. What is geographic segmentation?
A14. Geographic segmentation involves dividing consumers in the market by geographic area.
Q13. What is market segmentation?
A13. Market segmentation involves dividing the whole market into segments based on consumer characteristics and then targeting different products to each segment.
Q15. What is demographic segmentation?
A15. Demographic segmentation involves dividing customers in the market by age, gender, income, ethnic background, and social class.
Q16. What is psychographic segmentation?
A16. Psychographic segmentation involves dividing consumers in the market by lifestyles, personalities, and attitudes.
Q17. What is privatization?
A17. Privatization involves selling off public sector businesses to private sectors.
Q18. What is the importance of customer base?
A.18 A business needs a group of customers who the business can sell products to, this group is known as customer base. The business must satisfy the customer base in order to maintain customer loyalty.
Q.19 How does building customer relationships help businesses?
A.18 Collection information about customers’ income, lifestyle and buying habits to identify and satisfy customer needs.
Q.20 What are the reasons for change in customer spending pattern?
A.20
1) Price of product.
2) Price of competitors’ products.
3) Changes in customer income.
4) Changes in population size and structure.
5) Change in taste and fashion.
6) Spending on advertisement and other promotional activities.
Q. 21 How does Price of product affect spending patterns?
A21. The lower the price the more amount will be sold and vice versa.
Q.22 How does the price of competitors’ products affect spending patterns?
A22. Customers will buy from the business with the lowest price.
Q.23 How does changes in customer income affect spending patterns?
A23. When income rates decrease, customers will spend less on wants and luxurious items.
Q.24 How does changes in population size ad structure affect customer spending patterns?
A24. The more population there is the bigger market is needed.
Q.25 How does changes in taste and fashion affect customer spending patterns?
A25. The demand of products changes over time.
Q.26 What are the benefits of mass marketing.
A26. 1) Reduces unit cost.
2) Larger market has more potential for sales.
3) Changes in consumer spending pattern has less impact.
- What are the disadvantages of mass marketing.
1) More market competition.
2) Not all markets are big enough to support mass marketing.
3) Complicated expectations from customer has reduced efficiency for mass marketing.
- What is the importance of market segmentation?
A29. People from different backgrounds such as gender, religion, ethnicities and other factors change the demands and expectations of customers. Market segment makes it easier to target people with different backgrounds easier.
Q29. What are the benefits of market segmentation?
A30.
1) Goods and services can be designed to meet the specific needs.
2) Allows segmentation and targeting of customers with special requirements.
3) Marketing strategies can easily be selected for each segment.
4) Small firms can operate in less segments.
5) May be possible to charge higher prices for similar products or services.
Q30. What is the importance of customer loyalty?
A30. Customer loyalty means that a customer base is created. Customer base is a group of people who will buy products specifically from the business.
Q31. Activities of government intervention in markets.
A31.
1) Legal control that prevent firms from dominating markets.
2) Selling off public sector organizations to private sectors. (privatization)
3) Removal of government controls from industry.
4) Providing financial and other aids to small and medium sized businesses.
Q.32 E-commerce in business.
A.32 Organizations have their own websites and use social media networks to promote products.
Q.33 Ways businesses respond to changing patterns.
A.33
1) Product development.
2) Improve efficiency.
3) Increased promotion.
4) Look for new markets.
Q.34 Explain how this allows businesses to assess to changing spending patterns: Product development.
A.34 Market research will identify the needs and wants of customers after changes.
Q.35 Explain how this allows businesses to assess to changing spending patterns: Improves efficiency.
A.35 Efficient use of resources will help a business to reduce average costs.
Q.36 Explain how this allows businesses to assess to changing spending patterns: Improve efficiency
A.36 Efficient use of resources will help a business to reduce average costs.
Q.37 Explain how this allows businesses to assess to changing spending patterns: Increased promotion
A.37 Increasing advertising to persuade consumers to buy products.
Q.38 Explain how this allows businesses to assess to changing spending patterns: Look for new markets
A.38 Consumer spending patterns change and causes more competition, thus looking for a different market may help.
Q.39 What are the benefits of niche marketing?
A.39
1) Small firms are able to earn profit.
2) Less competition.
3) Consumers will usually pay more.
Q.40 What are the disadvantages of niche marketing?
A.40
1) May attract competitors, reducing profit.
2) Economies of scale are less likely to be achieved.
3) Small changes in consumer spending patterns could have a big impact.
Q.41 What are the methods of segmentation?
A.41
1) Geographic segmentation.
2) Demographic segmentation.
3) Psychographic segmentation.
Q.42 What are the Factors of geographic segmentation
A.42
1) Different regions in the same country.
2) Different regions in the world.
3) Different countries in the world.
Q.43 What are the Factors of demographic segmentation
A.43
1) Age,
2) Gender,
3) Income,
4) Social class,
5) Ethnic background,
6) Family size.
