1.1 - Meeting Customer Needs Flashcards
(23 cards)
What is a niche market?
Where a business targets a small segment of a larger market, where customers have specific needs
What is Mass marketing
Where a business targets a larger part of the market, many products are similar to competitors
Market size
Indicates the size of the whole market. Bigger market, more sales, depending on the share in the market
What is market share
It explains how the overall market is split by the existing competitors, a good indicator of competitive advantage
What is a dynamic market
They constantly change, the pace of change varies depending on customer tastes, technology, new market entrants.
What is innovation
About putting a new idea of approach into action, similar to invention; it can help gain market share or growth
Define competitive advantage
Where a business adds value/quality to a product therefore wins over customers gaining an advantage
What is risk
The possibility that something goes wrong within the business
What is uncertainty
The unpredictable events that can affect a business.
Product orientation
The business creates products based on what the business itself is good at producing
Market orientation
The business listens and responds to the customers and designs products based on their opinions and feedback
Define primary research
The data which is collected first hand for a specific reason
Define secondary research
The data that already exists and has been collected for a different purpose.
Quantitative research :
Based on larger samples so are more statistically valid ( pre set questions on a large sample)
Qualitative research :
The in depth research based off opinions, attitudes, beliefs and intentions
What is Sampling
It involves the gathering of data from a sample of respondents, the result should give a clear market to target for example.
What is market segmentation ?
Dividing the market into parts that reflect different customer needs and wants. E.g. Age, gender, religion, income.
What is market mapping
Shows the position of the product in the market, shown on a graph with two dimensions ( e.g. Low price, high price)
Advantages of market mapping
- Helps spot a gap in the market
- Useful for analysing competitors
- Encourages use of market research
Disadvantages of market mapping
- Gap doesn’t necessarily mean demand
- No guarantee of success
- is the market research reliable ?
What is product differentiation
The degree to which consumers realise that your brand is different from others
USP
Unique selling point - something that sets a product apart from its competitors in the eyes of customers.
What is adding value
The difference between the price of the finished product and the cost of inputs involved in making it
E.g. Delivering good customer service, operating efficiently, adding features and benefits to the product that customers want
