Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Business Theme 1 Marketing and people > 1.1 Meeting customer needs > Flashcards

1.1 Meeting customer needs Flashcards

(60 cards)

Start Studying
1
Q

Define Niche Market

A

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

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

Define Mass Marketing

A

Where a business sells into the largest part of the market where there are many similar products offered by competitors

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

Name key features of a mass market?

A

-Products aimed at broad segments with similar characteristics
-Production on large scale, lower average costs, economies of scale
-Lower prices for consumers but lower profit margins

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

Benefits of mass marketing?

A

-Wider potential customer base
-lower risk - resources focused on one large market
-Economies of scale leading to high profits
-Market research costs relatively low

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

Advantages of targeting a Niche Market?

A

-Less competition
-Target particular customers
-Builds up specialist skill and knowledge
-Can often charge higher prices, higher margins
-Customers tend to be more loyal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Drawbacks of targeting a Niche Market?

A

-Lack economies of scale
-Risk of over dependance on a single product or market
-Likely to attract competition if successful

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Are Niche products price elastic or price inelastic?

A

Price inelastic - because niche products are fulfilling a particular specialist demand we find demand tends to be more price inelastic

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

What is market size measured in?

A

Sales volume (number of products sold) and Sales value

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

What can market growth be calculated using?

A

Calculated using either value ( market sales) or volume (units sold)

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

What does Market Share explain?

A

Proportion of total sales of a product compared to market as a whole

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

What is the formula for market share?

A

Market share= Sales of company or product / Total sales of the market X100

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

Define Dynamic Market

A

A market that is subject to rapid and continuous change

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

What are the 4 areas to consider when examining dynamic markets

A

-Online retailing
-How markets change
-Innovation & market growth
-Adapting to change

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

Define Product innovation?

A

Adapting or improving existing products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define process innovation?

A

Finding more efficient ways of producing existing products, or delivering existing services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Benefits of product innovation:

A

-First mover advantage: higher prices and profitability
-Added value, opportunity to build customer loyalty
-Enhances reputation, increases market share

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

Benefis of Process Innovation:

A

-Reduced costs
-Improved quality
-Higher profits

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

Ways competition affects the Market?

A

Directly: When businesses sell similar products
Indirectly: When firms sell different products but compete for customers disposable income

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

Define risk

A

The potential threat to businesses success can be measured and prepared for using risk management

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

Define uncertainty

A

The unpredictable and uncontrollable events that affect business

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

Define Product Orientation

A

Focuses on characteristics of the product rather than needs of customer, creating a product first then finding a market. Risk that overtime product might not be what market are looking for.

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

Define Marketing Orientation

A

Focus on needs of customers and designs product accordingly. Benefit from increased demand, profits and a valued brand image.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Define Primary Research

A

Direct information from consumers information that’s new and collected firsthand eg surveys, interviews, focus groups

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

Define Secondary Research

A

Data that already exists and has been collected eg governments reports, competitor websites.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Benefits of Primary Research:
-Directly focused on the business -More detailed insights, particularly into customer view
26
Drawbacks of Primary research
-Time consuming -Risk of survey bias and sample not being representative
27
Benefits of Secondary Research
-Easy to obtain and quick to collect -Lower costs of collection
28
Drawbacks of Secondary Research
-Can quickly become out of date -Not tailored to business needs/ lacks relevance -Specialist reports often quite expensive
29
Define Quantitative research
Numerical data
30
Define Qualitative research
Based on opinions, attitudes and beliefs
31
Benefits of Qualitative research
-Provides useful insights for a business -Can highlight issues that need addressing -Effective for testing elements of marketing mix
32
Drawbacks of Qualitative research
-Expensive to collect and analyse -Based around opinion -Risk of sample not bing representative
33
Benefits of Quantitative research
-Data easy to analyse -Numerical data provides insights into relevant trends -Can be compared with data from other sources
34
Drawbacks of Quantitative research
-Focuses on data rather than explaining why things happen -May lack reliability
35
Uses of social media in Market Research
-Source of both primary and secondary research -Software quickly highlights what customers are saying about product/brand -Surveys easy to set up and analyse
36
Drawback of social media in Market Research
-Doesn't give the complete picture that you need to further your product or service -Not everyone uses social media, unrepresentative
37
Benefits of IT to support Market Research
-Quick and automated -Huge data sets can be analyse, reduce need for sampling -Social networking -Company websites
38
Define Market Segmentation
Process of dividing a market based on consumer characteristics eg age, gender, income, location
39
4 main categories of Market Segmenting
1. Geographic 2. Demographic 3. Psychographic 4. Behavioral
40
Geographic segmentation
Customer location, region, Urban/Rural, classification
41
Demographic segmentation
Age, Gender, Occupation, Socio-economic group
42
Bevavioural segmentation
Rate of usage, Loyalty status, readiness to purchase
43
Psychographic segmentation
Personality, lifestyles, attitudes, class
44
Benefits of effective market segmentation
-Recognises not all consumers are identical -Products altered to meet different needs of groups -Less expensive and wasteful -May increase loyalty if needs are being met leading to recreate purchases
45
Drawbacks of Market segmentation
-Difficult to identify a segment -Requires more detailed market research -Segment may be small & unprofitable
46
Dynamic Markets: Advantages of online retailing
-Access to more customers -Longer trading hours -Lower costs
47
Dynamic Markets: Disadvantages of online retailing
-High costs of website development -Online retailing dominated by large businesses -High levels of competition -Lack of personal contact with customers -Hard to get desired level of customer service.
48
How does competition benefit customers?
-Lower prices -Better quality products and customer service
49
What does an absence of competition do to businesses?
Reduces incentives for businesses to innovate, be efficient or offer lower prices.
50
Define Market positioning
How customers percieve a business and how businesses want custromers to percieve them.
51
Define Market mapping
A tool for identifying the position of a product within a market against two axes eg price and quality
52
What does it mean if there is no space left on market map?
Indicates market is saturated, high competition & low profits
53
Benefits of market mapping
-Allows gaps in market to be identified -Comparisons can be made between rivals and products -Simple to construct, visual illustration
54
Drawbacks of market mapping
-Gap may exist because its not profitable to fill -Markets often dynamic and a map only provides insights at a specific point in time.
55
Define Competitive advantage
Features of a business the are perceived as superior to rivals by customers. Need to be distinctive (Different from competitors) and defensible (Prevent rials form copying)
56
Examples of competitive advantages
-Quality/reliability -Delivery times -Ethical stance -Low prices -Design
57
Define differentiation
The process of attempting to distinguish products from competitors
58
What does strong/successful differentiation help firms do?
Helps develop a competitive advantage & USP, increase demand, brand loyalty and allow firms to charge higher prices.
59
Define Adding Value
Difference between price that's charged to the customer and the cost of inputs required to create the product
60
Methods of adding value
-Marketing & branding -Functions & features -Customer service -Customisation -Packaging

Business Theme 1 Marketing and people (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions