UNIT 3 - Chap 10: Marketing, competition and the customer

Question 1

Marketing?

Answer 1

Marketing is identifying customer wants and satisfying them profitably.

Question 2

A customer?

Answer 2

A customer is a person, business or other organisation which buys goods or services from a business.

Question 3

Customer loyalty?

Answer 3

Customer loyalty is when existing customers continually buy products from the same business.

Question 4

Customer relationships?

Answer 4

Customer relationships is communicating with customers to encourage them to become loyal to the business and its products.

Question 5

A consumer?

Answer 5

A consumer buys goods or services for personal use – not to re-sell.

Question 6

Market share?

Answer 6

Market share is the percentage of total market sales held by one brand or business.

Question 7

A niche market?

Answer 7

A niche market is a small, usually specialised, segment of a much larger market.

Question 8

Mass market?

Answer 8

Mass market is where there is a very large number of sales of a product.

Question 9

The role of marketing? (4)

Answer 9

1. Identify customer needs – finding out what kind of products or services customers wants
2. Maintain customer loyalty by building customer relationships.
3. Build customer relationships to gain information about customers
4. Anticipate changes in customer needs – by identifying new trends in customer demand or gaps in the market so that

Question 10

Why customer/consumer spending patterns change? (4)

Answer 10

• Consumer tastes and fashions change
• Changes in technology
• Change in incomes
• Ageing populations

Question 11

Why have some markets become more competitive? (3)

Answer 11

• Globalisation of markets has meant that products are increasingly sold all over the world
• Transportation improvements have meant that it is easier and cheaper to transport products from one part of the world to another.
• Internet/e-commerce has meant that consumers can search for products and buy from overseas markets.

Question 12

Why is it important to recognize change in consumer needs?

Answer 12

If business fail to response to customer needs, then sales will likely fall and so will profits. ​

Question 13

How businesses can respond to changing spending patterns and increased competition? (4)

Answer 13

1. Maintain good customer relationships e.g. by effective marketing (market research and advertising) ​
2. Keep improving their existing products ​
3. Bring out new products to keep customers interested ​
4. Keep costs low- as this will allow them to have a lower price and so be more competitive