Unit 2 Flashcards
What does Consumer Demand mean
The quantity of goods or services that consumers are willing and able to purchase
What is Willingness to Purchase Goods/Services determined by
Price, quality & availability
How do Substitutes affect a Market Share
If there are many different competing firms, then they will compete for market share
How does lots of choice in products affect demand
Lots of choice, means demand will be lower
What is Marketing defined as
The process of identifying, anticipating and meeting customer needs
What are the three influences on Demand
Affordability, Substitutes, Needs & Wants
What are the four purposes of Marketing
Anticipating demand, recognising demand, stimulating demand, satisfying demand
What should Marketing Objectives be
SMART
What does SMART mean
Specific, Measurable, Attainable, Relevant, Timebased
What does Market Share mean?
The percentage of sales in a market, by one particular firm
How do you calculate Market Share
Sales by Value (£) / Market Size (£) x 100
Whats the difference between Aims & Objectives
Aims are more long term, whereas Objectives refer to how the aims will be met
What are some examples of Aims
Understanding customer wants & needs, developing a new product, improving profitability, increasing market share, diversification, increase brand awareness/loyalty
What is Market Growth
The change in the size of a market or industry
Define Market Segments
A group of buyers with similar characteristics and buying habits
What are five examples of Market Segmentation
Culture, Age, Gender, Income & Customers in the Market
What are some more specific examples of Market Segments
Gym-goers, Car Enthusiasts, Smokers, Football Fans, University Students
Why do businesses need to segment their markets?
Customers differ in the: benefits they want, amount they are willing to pay, media they see, quantities they buy, time & place that they buy
What are two benefits of market segmentation
Helps businesses to understand their consumers better & easier to target your product at specific buyers
What are the Four Market Segments
Geographic, Demographic, Behavioural, Psychographic
Define Geographic
Customer location, region, urban/rural
Define Demographic
Age, gender, occupation, socioeconomic group
Define Behavioural
Rate of usage, benefits sought, loyalty status, readiness to purchase
Define Psychographic
Personality, lifestyles, attitudes, class
What is the purpose of Logos
They’re marketing strategies that are used to target specific groups of people
Give three examples of a Market
Street market, an online marketplace or something bigger like the UK market
Define Market
A market is anywhere that a business can sell its products or services
Define Mass Market
Aimed at the general population
Define Niche Market
Subset of the main market and addresses a specialist need
What are three advantages of Niche Markets
Higher prices can be charged, businesses are able to meet customer needs precisely, less competition short term
What are two disadvantages of Niche Markets
Fewer potential customers, may be vulnerable to competition
Define three advantages of Mass Markets
Increase brand awareness, huge number of potential sales, able to benefit from economies of sale
Define two disadvantages of Mass Markets
Products are harder to personalise, potentially more competition
