1.1 Meeting Customer needs

Question 1

what is the mass market

Answer 1

aimed to the general market

Question 2

what is the niche market

Answer 2

subset of main market and addresses a specialist need

Question 3

whats a mass market characterist

Answer 3

a product sold to all customers in the same way
(well established brands)

Question 4

mass market pros

Answer 4

economies of scale
everyone is equally targeted
increased sales= increased revenue= research and development

Question 5

mass market cons

Answer 5

lots of competition
homogenous products need to be differentiation through marketing= expensive ( USPs important)

Question 6

niche market characteristic

Answer 6

subset of main market and caters to a particular segment of the market

Question 7

niche market pros

Answer 7

charge premium price
easier to target customers
small scale production= flexible to trends
less competition

Question 8

niche market cons

Answer 8

demand may not be constant
higher unit costs= no economies of scale

Question 9

what is a dynamic market

Answer 9

one that is always changing ,developing, expanding and offering new products to customers with new ways to shop

provided for the constant changes in consumer wants and needs in the market

Question 10

how can market size be measured

Answer 10

volume of sales
OR value (spent by customers)

Question 11

competitive market

Answer 11

benefits the customer as there is a a lot of products to choose from
- businesses need to be very efficient and listen to consumer wants and needs
competition in homogenous market = non price factors need to be unique

Question 12

primary research + secondary research

Answer 12

original data that helps the business make specific decision (survey, loyalty cards, observation)

existing data
(previous annual reports, internal data, government sources, news

Question 13

product and market orientation

Answer 13

product: developing products based on what it is good at making rather than what consumer wants.

market: creating products to satisfy customers

Question 14

collecting market researcher

Answer 14

Collecting data: communication between customers to meet demand
Asses potential demand
Which promotions would best suit a launch
Asses competition
Build a customer profile
Pros:
Reduces risks and poor decision making
Develop a market plan
React to and prepare for changes
See opportunities for growth

Question 15

market segmentation

Answer 15

a process companies use to break their potential customers into different sections.
-Demographic
-Geographic
-Salary
-Gender
-Age
-Religion

Question 16

differentiation from rivals

Answer 16

To fill a gap in the saturated market
Consumers must be able to perceive this difference and may be willing to pay a premium price for the product
Reputation (word of mouth)
Customer service ( reviews)
Value of money
Product features

Question 17

adding value

Answer 17

Difference between the price that is charged to the customer and the cost of inputs to create the product
Design- develop new technology/ design features to make a unique product
Production- achieving quality (higher price) and efficiency (lower costs)
Marketing- creating an image that makes the product more desirable
Convenience- if the product is accessible without struggle

Question 18

adding value pros

Answer 18

Pros:
Better reputation
Higher profit margin as higher price can be put in place
Protection against competitors offering a lower price

Question 19

competitive advantage

Answer 19

cost - business has a skilled workforce and efficient operations to provide low cost value to consumers
Differentiation: resources are used by a business to create a superior value for the consumer

Question 20

calculate market share

Answer 20

business revenue / Toal industry revenue x100

Question 21

how can markets change
PESTLE

Answer 21

political
economic
social
technological
legal
environmental

Question 22

limitations to market research

Answer 22

sample size is too small
sample bias ( sample not generalisable to total population)

Question 23

benefits of market segmentation

Answer 23

• products designed to suit specific customers
• meeting customer needs = higher prices can be charged
• promotional activity is easier to target

Question 24

market positioning

Answer 24

business decides what image they are trying ti create for product compared to rivals

uses market mapping to spot gaps in the market to make it more profitable