Unit 5.1 - Identifying and Understanding Customers Flashcards
What does Marketing mean?
Businesses exist to provide goods and service to meet our wants and needs.
All businesses are involved in an exchange process, what does this mean?
A business provides a good service in exchange for something in return e.g. money.
What is a Good?
Something tangible like a pen.
What is a Service?
Something intangible but is beneficial like a bus journey
What is Want?
Something you’d like but not need like drinking Cola instead of water
What is a Need?
Something you must have to survive like water.
What’s the difference between Customers and Consumers?
A customer buys a product from a business whereas a consumer is someone who uses the good and service produced by businesses.
How can a business increase its sales?
By providing more benefits and doing something better than competitors.
What is Marketing Mix?
It’s a combination of factors that influence a customer’s decision to purchase a product. .
List the factors that make you go to your favorite clothes shop.
Like the clothes there, Brand, Layout of the store, Quality, Price, Easy to get to, Might want people to know you shop there, If there is a sale, Easy refund and returns policy.
If you were to buy a new pair of footwear, what would you consider?
If they are affordable, Environmentally friendly, Stylish, Reliable.
What would the consequences be if a business didn’t understand its customers?
Withdraw the product because sales are too low, To amend the product in some way, which has a cost, To lower the price, which may reduce profits, Damage the brand name which may affect the company’s future success.
