Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business - Theme 1 > 1.1 meeting customer needs > Flashcards

1.1 meeting customer needs Flashcards

1
Q

what is a mass market?

A

a large market that produces their products in bulk, for example, cereal or chocolate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is a niche market?

A

a smaller market that spell specialised products, for example, custom dog food

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

advantages of a mass market:

A
  • large number of customers
  • benefit from economies of scale, leading to lower unit costs, allowing more room for profit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

disadvantage of a mass market:

A
  • highly competitive, meaning more money has to be spent on marketing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

advantages of a niche market:

A
  • less competition as they are in a smaller market
  • they can create loyal customers
  • easier to focus on the needs of the customer
  • can charge premium price
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

disadvantages of a niche market

A
  • if a large business enters your market, they can take over
  • can’t benefit from economies of scale
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is market size?

A

the sales of all business in the market, it can be determined by value (money made from total sales) and volume (physical quantity of sales)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is market share?

A

the proportion of a market that is held by a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

how can market share be calculated?

A

sales of a business/total sales in the market x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is a dynamic market?

A

a market that is constantly changing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is a brand?

A

something that differentiates one business from another, like through a logo, slogan or name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

how can strong branding benefit a business?

A

-helps product recognition

-develops an image

-can charge premium price when business becomes well known

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is online retailing?

A

selling online

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are some benefits of selling online? (4)

A
  • operates 24hrs, consumers would be happy with this
  • easier to gather personal information on consumers so that they can be targeted with products and offers in the future
  • costs like sales staff, rent and other overheads can be avoided, which can reflect on a decrease in their prices to consumers
  • online retailers can reach more consumers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are some drawbacks of selling online? (4)

A
  • some consumers may prefer to feel the product and test its quality before buying
  • many consumers still enjoy the shopping experience in real life
  • security risks as all card details and personal info are online
  • consumers have to wait for delivery, if late or if product comes damaged, complaints would arise
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

how does the size of markets change?

A

it would change depending on what the market is and what is rising in demand, for example, the market for technology like new phones etc is rising due to high demand, but markets like coal is decreasing due to alternatives like oil, gas and renewable sources of energy are being introduced to the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is economic growth? why is it good for business

A

when global living standards rise over time, meaning the population has more disposable income, leading to higher consumer confidence and businesses are then able to make more sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is innovation? why is it important to businesses?

A

innovation is vital in ensuring businesses keep up with the market they are in, like in the phone, internet and TV markets, constant research is necessary to ensure they keep up with new advancements in technology to keep up with competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

how can changes in legislation impact a business?

A

changes in legislation can increase/decrease costs of a business, for example, wage increases, or sugar tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

why is it important that businesses are flexible?

A

they must be flexible in terms of flexible working practices, machinery, and staff, like staff being trained in a variety of skills, or being able to work flexibly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

how does competition affect businesses in the market?

A

competition puts businesses under pressure, and it determines how a business will price their products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

how would a business try to attract customers in a highly competitive market?

A
  • lowering prices
  • making their products look better than rivals
  • using better advertisement
  • offering extras like better customer service
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

how will consumers benefit in a highly competitive market?

A

they have many different options to choose from

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what is product orientation?

A

when the business focuses production on the product itself rather than the consumers wants and needs. it makes the customer want the product, not the other way round

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

give an example of a product orientated industry

A

phones

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what is market orientation?

A

when the business focuses on what the consumer wants/needs rather than focusing on the product itself

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is an advantage and disadvantage of being product orientated?

A

(+) can create more innovative products improving the experience of consumers

(-) there is a risk consumers won’t like the product, leading to less sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what are 2 advantages and disadvantages of being market orientated?

A

(+) can quickly respond to changes in the market
(+) stronger in competing with new business’ entering the market

(-) increased costs of intensive market research
(-) they have to produce the right amount and charge the right price to satisfy customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is primary data?

A

data collected by the business itself that didn’t exist before the research began.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what are some methods of primary research?

A
  • questionnaires
  • surveys
  • interviews
  • focus groups
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what is market research?

A

involves gathering, presenting and analysing information about marketing and the consumption of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what are budgetary constraints?

A

when a business plan has a limit on the amount of money that can be spent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what is the difference between a risk and uncertainty?

A

a risk is when the potential outcomes are known, and uncertainty is when they are unknown

34
Q

what is an omni-channel platform?

A

a business that runs in store, on a website and an app

35
Q

3 advantages of market research

A
  • helps identify and meet customer needs and wants
  • can quantify the likely demand for a product
  • provides an insight to consumer behaviour
36
Q

2 disadvantages of market research

A

-costs a lot of money

-time consuming

37
Q

2 advantages of primary research

A

-specialised for your business

-reliable (not outdated)

38
Q

3 disadvantages of primary research

A

-time consuming

-expensive

-not always reliable as you need the right expertise to research

39
Q

what is an interview? give an advantage and a disadvantage for them

A

getting face to face feedback about your product

(+) get direct feedback form consumer

(-) may be bias+ harder to analyse (qualitative data)

40
Q

what are focus groups? give an advantage and a disadvantage for them

A

small gatherings of individuals used to test ideas before marketing

(+) get multiple opinions /feedback

(-) feedback can be bias as everyone can just agree with eachother

41
Q

what are observations? give an advantage and a disadvantage of them

A

directly observing consumers in their natural environment

(+) not bias

(-)can’t get direct feedback

42
Q

what are lotalty cards? give an advantage and disadvantage for them

A

cards that come with discounts when you purchase a business’ item regularly

(+) gain loyal customers

(-) they’re easy to lose (paper)

43
Q

what are surveys? give an advantage and a disadvantage of them

A

when a business creates a survey to get opinions on their product

(+) easy to analyse and put into a table

(-) time consuming

44
Q

what is secondary research?

A

gathering existing information in some form, it can be internal, like records within the business, or external data, external sources like public reports etc

45
Q

give 3 examples of internal data sources

A
  • existing market research reports
  • sales figures
  • annual report and accounts by the business
46
Q

give 3 example of external data sources

A
  • information from competitors, like price lists
  • government publications including social trends etc
  • general publications, like magazine or newspaper articles
47
Q

give 3 example of external data sources

A
  • information from competitors, like price lists
  • government publications including social trends etc
  • general publications, like magazine or newspaper articles
48
Q

what is qualitative research?

A

involves collecting data about attitudes, beliefs and intentions - bias

49
Q

what is quantitative research?

A

collecting data that can be measured, e.g statistical data like sales figures and market share

50
Q

what are the limitations of market research?

human behaviour and sampling bias

A

human behaviour: human behaviour is unpredictable, meaning constant market research must be done to ensure the business keeps up with human behaviour

sampling and bias: it is important to use a good, large sample, but this is hard and costly

51
Q

how can websites be used to support market research? give 2 advantages and 2 disadvantages of using them

A

they can be used to provide access to online surveys. reviews can be posted on the website.

(+) cheap and easy to set up
(+) good reviews can attract customers

(-) people can ignore the website
(-) some bad reviews can steer customers away

52
Q

what is social networking?

A

using social media platforms like Facebook, Twitter and Youtube

53
Q

how can social networking be used to support market research? give 2 advantages

A

they can simply search up what is trending and popular to see what customers like.

(+) can do broad research and reach people from all around the world
(+) easy and cheap to do, don’t need expensive high tech equipment

54
Q

what is a database? what is it used for?

A

an electronic filling system that allows data to be stored. it is used so that a business can update and recall the information when needed

55
Q

what is market segmentation?

A

when a market is divided into segments, these segments can be geographic or demographic

56
Q

what is geographic segmentation?

A

when customers are divided into segment depending on where they live, e.g India will have different tastes in cuisine

57
Q

what is demographic segmentation?

A

when you divide markets according to age, gender, income, social class and ethnicity

58
Q

what is psychographic segmentation?

A

dividing the market depending on their attitudes, lifestyles and opinions, like how travel companies target their holidays to families with younger children

59
Q

what is a downside of using psychographic segmentation?

A

it can be difficult for the business to collect data about the beliefs, attitudes and lifestyles of consumers

60
Q

what is behavioural segmentation?

A

when trying to segment markets according to how consumers relate to a product, this can be down to usage rate (frequency of the purchases), loyalty, time and date of consumption

61
Q

what are the benefits of market segmentation?

A

-businesses that produce different products for different segments can increase revenue (e.g first class on flights)

  • customers can be more loyal to a business that provides products tailored specifically to them
62
Q

what is market positioning?

A

the view consumers have on the quality, value for money and image of a product in relation to those of competitors

63
Q

what is market mapping?

A

a diagram that sorts where the business is positioned in the market according to high/low price and high/low quality

64
Q

what can market mapping be used for ?

A

to find out how customers view the business compared to competitors in the market. it would then consider what they need to work on and what consumer demands are

65
Q

what is a limitation of using a market map?

A

the information needed to plot the maps can be expensive to get, as it would require primary market research

66
Q

what is a competitive advantage?

A

when a business has an advantage over competitors allowing them to perform better than rivals and potentially charge higher prices

67
Q

how can a business develop a competitive advantage? (4)

A
  • design of the product
  • quality of the product
  • creative advertising
  • good customer service
68
Q

what is product differentiation?

A

an attempt by a business to distinguish its product from competitors

69
Q

how can a business differentiate their product?

A

through changing the physical state of the product, like the colour, feel or look

70
Q

why would a business want to differentiate their products?

A
  • they can then charge premium prices
  • gain better recognition as the product stands out
  • become more competitive
71
Q

added value

A

added value is when the business adds extra features to a product in order to be able to charge higher prices

72
Q

give 2 ways a business can add value to its products

A
  • good customer service
  • packaging
73
Q

what factors can lead to a change in demand

A
  • competitor prices rising or falling
  • changes in consumer incomes
  • changes in fashion, tastes or trends
  • seasonality (e.g summer clothes)
74
Q

what is supply?

A

the amount of product that suppliers make available to the market at any given price in a given period of time

75
Q

demand curve

A

a graph showing how much of a good will be bought at different prices

76
Q

inferior goods

A

if income rises, demand for these products will fall e.g supermarkets ‘own label’ brands

77
Q

normal goods

A

if income rises, demands will rise, if income falls, demand also falls, e.g a holiday or a new car

78
Q

substitute goods

A

goods that are bought as an alternative to others but serve the same function e.g cocacola V pepsi

79
Q

what factors can lead to a change in supply?

A
  • changes in the cost of production (if rises, supply falls)
  • introduction of new technology
  • indirect taxes (e.g VAT)
  • government subsidies (grant given to producers, usually to encourage production of a certain good)
80
Q

what is an equilibrium price?

A

Business - Theme 1 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions