Flashcards in 1.1- Meeting Customer Needs Deck (43)
What is Marketing?
management process involved in identifying, anticipating and satisfying consumer requirements profitably.
What is a Mass Market?
where business sells into larger part of market where there are many similar products offered by competitors
What is a Niche Market?
where business targets smaller segment of a larger market where customers have specific needs and wants
benefits of being in a mass market?
-opportunities for large sales
-possibility of economies of scales
drawbacks of being in a mass market?
-Requires large investment in marketing
benefits of being in a Niche market?
-profit margins higher
drawbacks of being in a Niche Market?
-vulnerable to market changes
-risk of over dependence on a single product
What is Market Size?
the total volume of a market
- in terms of number of sales or value of sales
Mass markets characteristics
- customers form majority of market
- needs and wants more general
- higher output and capacity
- low cost, wide distribution
Niche market characteristics
- loyal customers
- higher profit margins
- lack economies of scale
- can attract competition if successful
What is market share
- the percentage/segment of a market which a business controls
What is the Market Share Formula?
Sales of a business/Total sales in the market x 100
What is a dynamic market
- a market which is constantly changing
Name 3 key sources of change in a dynamic market
-customers tastes and preferences
-impact of new market entrants
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
How does online retailing benefit a market
How do markets change
-political- leaving EU- change in importing and exporting
-economic- economic recession-
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
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
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
What is product orientation?
-business develops products based on what it is good at doing
What is market orientation?
-business responds to customer needs and wants- designs products accordingly
What is primary research?
-new research conducted for particular purpose
What is secondary research?
-pre-existing data gathered for another purpose
Advantages of primary research
-up to date data
Advantages of secondary research
-provides good market overview
Disadvantages of primary research
-risk of bias from imterviewer
Disadvantages of secondary research
-info may be out of date
-can be expensive
What is quantitive data
-factual that aims to be statistically representative of the whole market