1.1- Meeting Customer Needs Flashcards Preview

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Flashcards in 1.1- Meeting Customer Needs Deck (43)
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1

What is Marketing?

management process involved in identifying, anticipating and satisfying consumer requirements profitably.

2

What is a Mass Market?

where business sells into larger part of market where there are many similar products offered by competitors

3

What is a Niche Market?

where business targets smaller segment of a larger market where customers have specific needs and wants

4

benefits of being in a mass market?

-opportunities for large sales
-possibility of economies of scales

5

drawbacks of being in a mass market?

-Highly competitive
-Requires large investment in marketing

6

benefits of being in a Niche market?

-less competition
-profit margins higher

7

drawbacks of being in a Niche Market?

-vulnerable to market changes
-risk of over dependence on a single product

8

What is Market Size?

the total volume of a market
- in terms of number of sales or value of sales

9

Mass markets characteristics

- customers form majority of market
- needs and wants more general
- higher output and capacity
- low cost, wide distribution

10

Niche market characteristics

- loyal customers
- higher profit margins
- lack economies of scale
- can attract competition if successful

11

What is market share

- the percentage/segment of a market which a business controls

12

What is the Market Share Formula?

Sales of a business/Total sales in the market x 100

13

What is a dynamic market

- a market which is constantly changing

14

Name 3 key sources of change in a dynamic market

-customers tastes and preferences
-online retailing
-impact of new market entrants

15

How does online retailing impact a dynamic market

-businesses face more competition as customers can easily shop around

-consumers- unable to physically see the products before buying

16

How does online retailing benefit a market

buisnesses cost

17

How do markets change

PESTLE:
-political- leaving EU- change in importing and exporting

-economic- economic recession-

18

How does innovation cause market growth

-competing firms continually develop features no rivals offer- so consumer loyalties chnage drastically

-once 1 innovation is successful- companies forced to adaot offerings to keep up with rivals

-so companies try to come up with own innovations to benefit by leading change in makret

19

Why do businesses have to adapt to change

-identifying subtle changes allows business to adapt to changes to meet customer needs

-changing earlier than rivals- major competitive advantage

20

How does competition affect the market

-need to drive down costs
-need to maintain compeititve prices
-need to devlop innovative prodcuts and servives
-need to maintain high quality products and servivesc

21

What is product orientation?

-business develops products based on what it is good at doing

22

What is market orientation?

-business responds to customer needs and wants- designs products accordingly

23

What is primary research?
-give exazmples

-new research conducted for particular purpose

-surveys
-retailer research

24

What is secondary research?
-give examples

-pre-existing data gathered for another purpose

-internet
-government statistics

25

Advantages of primary research

-up to date data
-detailed insights

26

Advantages of secondary research

-often free
-provides good market overview

27

Disadvantages of primary research

-expenisve
-risk of bias from imterviewer

28

Disadvantages of secondary research

-info may be out of date
-can be expensive

29

What is quantitive data

-factual that aims to be statistically representative of the whole market

30

What is qualititive data

-opinion- unlikely to be gathered on a alrge enough scale to give statsically reliable data

-designed to give insight into why customers behave the way they do