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Flashcards in 1.1 meeting cutomer needs Deck (33)
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1

what is a mass market?

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

2

what is a niche market?

- where a business targets a smaller segment of a larger market
- customers have more specific needs and wants

3

what are key features of a mass market?

- customer needs and wants more general
- associated with higher production output
- success associated with low cost operation

4

advantages of a mass market?

- cheaper production, economies of scale
- larger audience
- cheaper labour
- cheaper prices=attraction

5

disadvantages of a mass market?

- associated with lower quality due to price
- harder to charge premium price
- if people don't want the product they're left with lots of stock
- mass production= 1 mistake= stock wasted

6

advantages of a niche market?

- less competition
- clear focus, specific target market
- builds specialist skills
- charge premium price
- profit margins often higher
- more loyal customers

7

disadvantages of a niche market?

- lack of economies of scale
- risk of over dependence on one product
- likely to attract competition if successful
- vulnerable to market changes

8

what is the formula for growth rate?

change
------------
units sold for previous year

9

what is market share?

- how the market is split between the existing competition

10

what is a dynamic market?

- they all change
- place and nature of change varies by market

11

what are key sources of change in dynamic markets?

- customer tastes and preferences
- impact of technology on what and how customers buy
- impact of new market entrances

12

what are examples of highly dynamic markets?

- film industry
- taxi service
- camera market

13

what is an industry disputer?

- does something different in the industry which disturbs flow

14

why do markets change?

- to meet the needs of an ever changing society

15

what is market research?

- gathering information about the target market
- (consumers, competitors, distribution)

16

why is market research important?

- amounts people are wiling to pay
- quantities they buy
- time and place they buy
- media they see

17

what insights are provided by market research?

- dimensions of the market
- competitor strategy
- needs and wants of customers
- market segments

18

what is production orientated?

- business develops products based on what it is good at doing

19

what is marketing orientated?

- businesses respond to customer needs and wants
- designs products accordingly

20

what are types of market research?

- primary
- secondary

21

what is primary research?

- data collected first hand for a specific purpose

22

what is secondary research?

- data that already exists and which has been collected for a different purpose

23

what are advantages of primary research?

- more reliable
- gains opinions
- specific to your business

24

what are disadvantages of primary research?

- high costs
- time consuming
- inaccurate feedback

25

what are advantages of secondary research?

- quicker
- cheaper
- lots of it

26

what are disadvantages or secondary data?

- not specific
- may not be reliable

27

what is market segmentation?

- involves dividing a market into parts that reflect different customer needs

28

what are the main market segments?

- demographic
- income
- behavioural
- geographical

29

what is market positioning?

- when launching a new product/service companies need to decide where they want to position the brand in relation to customer perceptions and positioning of competitors

30

how is market positioning achieved?

- market mapping