1.1 Flashcards
(23 cards)
1
Q
mass markets
A
- less unqiue, broad market segments
- lowe average costs due to large scale production economies of scale
- greater affordability due to lower prices and high sales volumes
- lower profit margins
2
Q
niche markets
A
- specialised, aimed at narrow market
- high average costs due to small scale production
- high prices, lower sales volume
- higher profit margins
3
Q
brands
A
- add value , make product more desirable to customers
- influence market position, strong brands can charge higher prices as they have higher percieved qualities
4
Q
online retailing - advantages
A
- access to larger consumer pool
- longer trading hours
- cheaper to run, lower fixed costs
- can collect data to help with primary market research
- consumer time preference
5
Q
online retailing - disadvantages
A
- high costs for web development
- dominated by large businesses
-high competition, harder to stand out - lack of personal contact
- may not get desired customer services
- returns difficult
6
Q
how markets change
A
- tastes and preferences
- demographics
- amount of competition
- changing legislation
7
Q
market growth factors
A
- increasing population
- increasing incomes, higher demand
- changing tastes
8
Q
adapting to change
A
- allows to thrive in dynamic market
strategies: - flexible business structures
- meet customer needs
- invest in staff training
- innovate to have first mover advantage
9
Q
competition and market
A
- direct or indirect
-may benefit consumers, as lower prices, higher quality, better customer service - lack of competition reduces incentive to innovate or be efficient
10
Q
product orientation
A
- focus of characteristics of product rather than customer needs
- create product first then find a market
- may move too far away from what the market is looking for
- product research, testing and focus
11
Q
market orientation
A
- focuses on needs of customers and uses this to design products that meet customer needs
- custiomers at the centre of market decisions
- products developed in response to consumer needs
- business benefits from increased demand, profits and a valued brand image
12
Q
primary research - advantages
A
- info focused on needs of business
- not available to rivals
- in depth info
- up to date and specificp
13
Q
primary research - drawbacks
A
- small sample sizes and unrepresentative
- bias may mean researches can ask leading questions
- may need to hire market research specialists, expensive
14
Q
secondary research - advantages
A
- info already available , quick to collect
- info is free and cheap to collect
- suitable for small business that lack budget
15
Q
secondary research - disadvantages
A
- may lack relevance or be factually correct
- expensive to purchase from specialist companies
- may be out of date
16
Q
market segmentation - advantages
A
- recognises consumers arent identical
- products can be altered to meet different needs of different groups of consumers
- less expensive and wasteful than wider marketing
- increased loyalty if needs are met, repeat purchases
17
Q
marketing segmentation - disadvantages
A
- not everyone in a segment behaves the same
- difficult to identify a segment
- requires more detailed market research, costly
- segment may be too small or unprofitable to cater to
18
Q
market maps - usefulness
A
- gaps can be identified, allows business to innovate
- comparisons can be made to rival and their position
- maps simple to construct
19
Q
market maps - limitations
A
- gap may occur as its not profitable
- requires primary research which can be expensive
- only assesses two criteria, too simple
- markets often dynamic, market mapping shows one time
20
Q
sources of competitive advantage
A
- quality
- delivery times
- low prices
- reliability
- ethical stance
- design
21
Q
product differentiation
A
-helps develop competitive advantage
- USP
-increases demand, brand loyalty
- can charge higher prices
22
Q
adding value methods
A
- marketing and branding
- functions and features
- customer service
- customisation
- packaging
23
Q
A
