unit 2 :/

Question 1

What is a need?

Answer 1

Basic requirement for survival: food, water, shelter, warmth, clothing.

Question 2

What is a want?

Answer 2

Things that we would like to have that make our life more comfortable and enjoyable.

Question 3

What do customers want?

Answer 3

Good quality, value for money, low prices, convenience, wide range of products.

Question 4

If customers are satisfied this will lead to..?

Answer 4

Satisfied customers, customer loyalty, word of mouth.

Question 5

This leads too…?

Answer 5

Increased sales and profits

Question 6

Definition of market segmentation?

Answer 6

A market segment is a part of a market that contains a group of buyers with similar characteristics.

Question 7

Each market segment contains..?

Answer 7

Consumers who buy similar products, have similar customer needs and wants.

Question 8

What are main streamers?

Answer 8

They stick to well known brands and have conventional leisure aka walking, reading, gardening

Question 9

What are aspires?

Answer 9

Must have the latest gadgets. Involved in motorbikes, snowboarding.

Question 10

What is a succeeder?

Answer 10

They like quality, entertaining, socializing and take frequent holidays.

Question 11

Reformers?

Answer 11

Recycycling, environmentally friendly.

Question 12

High-flyers?

Answer 12

Spend lots.

Question 13

Gap in the market?

Answer 13

A situation where no business currently serves the needs/wants of customers for a particular product/service.

Question 14

Why business’ need competition?

Answer 14

Business’ need to compete with rivals firms to attract customers and generate sales.

Question 15

Direct and indirect competition?

Answer 15

Direct: selling the same product as you.
Indirect: selling similar/alternative product as you.

Question 16

How do buisness’ compete?

Answer 16

Price, quality, customer service, range, location, design, brand.

Question 17

What is market research?

Answer 17

Process of gaining information about customers, competitors and market trends through primary and secondary data.

Question 18

How market research helps business’?

Answer 18

Identify a gap in the market, analyse competitors, identify customer needs and wants.

Question 19

Primary research?

Answer 19

Gathering of new information which hasn’t been collected before.

Question 20

Examples (p)?

Answer 20

Test marketing, surveys, observations, questionnaires, focus groups, interviews.

Question 21

Secondary research?

Answer 21

Gathering information that has already been collected.

Question 22

Examples (s)?

Answer 22

Government statistics, newspapers, sales data, the internet.

Question 23

Pro’s and cons for primary research?

Answer 23

Pro’s: info is up to date, competitors won’t have the info, obtain the info you want.
Cons: it is expensive, time consuming, difficult to obtain, small sample of people.

Question 24

Pro’s and cons of secondary research?

Answer 24

Pro’s: already available, cheap, can find out about competitors, large sample.
Cons: outdated, difficult to understand, may not be relevant, unreliable.