1.1 - Meeting Customer Needs

Question 1

What is a Market?

Answer 1

A market is any place where buyers and sellers meet, e.g., Amazon or a shopping mall.

Question 2

What is the aim of Marketing?

Answer 2

Identify, anticipate, and satisfy consumer needs and wants profitably.

Question 3

Define Needs in marketing context.

Answer 3

Essential items, e.g., food, shelter.

Question 4

Define Wants in marketing context.

Answer 4

Non-essential desires.

Question 5

What characterizes Mass Markets?

Answer 5

Products aimed at broad segments with less unique products.

Question 6

List some characteristics of Mass Markets.

Answer 6

• Large-scale production = economies of scale
• Lower prices = greater affordability & higher sales volumes

Question 7

What characterizes Niche Markets?

Answer 7

Products aimed at a smaller subset with more specialized & unique offerings.

Question 8

List some characteristics of Niche Markets.

Answer 8

• Higher prices = lower sales volume but higher profit margins

Question 9

How can Market Size be measured?

Answer 9

( Sales Revenue / Market Share ) * 100

• Sales volume – The number of products sold
• Sales revenue – Calculated as price × quantity sold

Question 10

What is a brand?

Answer 10

A unique name, image, or logo that helps a product stand out.

Question 11

What are some benefits of Branding?

Answer 11

• Helps differentiate products
• Influences consumer purchasing decisions

Question 12

What defines a Dynamic Market?

Answer 12

A market that constantly changes due to various factors.

Question 13

List factors that contribute to a Dynamic Market.

Answer 13

• Online Retailing
• Market Changes
• Innovation & Market Growth
• Adapting to Change

Question 14

What are factors contributing to Market Growth?

Answer 14

• Increasing population size
• Rising income levels = increased demand

Question 15

How does Competition benefit Consumers?

Answer 15

• Lower prices
• Better quality products
• Improved customer service

Question 16

What are the effects of No Competition?

Answer 16

Businesses have less incentive to innovate or lower prices.

Question 17

Define Risk in a business context.

Answer 17

Risk can be calculated & prepared for.

Question 18

Define Uncertainty in a business context.

Answer 18

Unexpected events that cannot be predicted.

Question 19

What is Product Orientation?

Answer 19

Focuses on creating a high-quality product first, assuming sales will follow.

Question 20

Give an example of Product Orientation.

Answer 20

Gillette prioritizing product innovation.

Question 21

What is Market Orientation?

Answer 21

Focuses on understanding consumer needs first.

Question 22

Give an example of Market Orientation.

Answer 22

Universities designing courses based on student demand.

Question 23

What is Primary Research?

Answer 23

Data collected first-hand, e.g., surveys, interviews, focus groups.

Question 24

List advantages of Primary Research.

Answer 24

• Tailored to business needs
• Up-to-date insights

Question 25

List disadvantages of Primary Research.

Answer 25

* Small sample sizes = unreliable results * Time-consuming & expensive * Potential for bias

Question 26

What is Secondary Research?

Answer 26

Uses existing data, e.g., government reports, market studies.

Question 27

List advantages of Secondary Research.

Answer 27

* Quick & cost-effective * Useful for small businesses

Question 28

List disadvantages of Secondary Research.

Answer 28

* Data may be outdated or irrelevant * Some reports are expensive to buy

Question 29

What technologies are used in Market Research?

Answer 29

* Company Websites * Databases * Social Media

Question 30

What is Market Segmentation?

Answer 30

Divides a market into smaller groups based on various factors.

Question 31

List factors used in Market Segmentation.

Answer 31

* Income * Location * Gender * Lifestyle * Age

Question 32

List advantages of Market Segmentation.

Answer 32

* Targets consumer needs more effectively * Reduces marketing costs

Question 33

List disadvantages of Market Segmentation.

Answer 33

* Consumers may fit multiple segments * Requires expensive research

Question 34

What is Market Positioning?

Answer 34

Deciding how a product is perceived (price, quality, branding).

Question 35

What is Market Mapping?

Answer 35

A tool comparing products based on two key factors.

Question 36

What can Market Map Analysis identify?

Answer 36

Identifies market gaps and helps businesses compare competitors.

Question 37

List limitations of Market Mapping.

Answer 37

* Some gaps exist because they are unprofitable * Requires costly primary research * Only considers two factors, which may oversimplify the market.

Question 38

What is a Competitive Advantage?

Answer 38

A competitive advantage makes a business stand out.

Question 39

List ways to gain a Competitive Advantage.

Answer 39

* Innovation * Strong branding & reputation * Building stakeholder relationships * Product differentiation * Market segmentation * Price leadership

Question 40

What is Product Differentiation?

Answer 40

Helps a business make its product stand out through unique features.

Question 41

List benefits of Product Differentiation.

Answer 41

* Strengthens competitive advantage * Creates a unique selling point (USP) * Increases demand & brand loyalty

Question 42

What does Adding Value refer to?

Answer 42

Adding value = Selling price – Production cost.

Question 43

List ways to Add Value.

Answer 43

* Branding & Marketing * Product Features * Customer Service * Customization * Premium Packaging