Marketing

Question 1

What is marketing

Answer 1

Marketing is identifying the customers wants and satisfying them to make profit

Question 2

Customer loyalty

Answer 2

When existing customers continually buy products from the same business

Question 3

Niche marketing

Answer 3

A small usually specialised segment of a much larger market

Question 4

Advantages and disadvantages of a niche market

Answer 4

• less competition from larger businesses as many large business are mass markets and aren’t specialised into one main product
• the needs of the consumer can be more closely focused
• easier to have a USP, can charge higher prices
• are usually relatively small and therefore have limited sales
• will specialise in one main product if demand falls for that product the business will lose sales quickly

Question 5

Mass market

Answer 5

Where there is a very large number of sales of a variety of products

Question 6

Mass market advantages and disadvantages

Answer 6

• Sales are high
• easier to benefit of economics of scales
• lower prices
• High levels of competition
• High costs of advertising and promotion
• Standish (basic) products may not meet the customers needs

Question 7

The role of marketing

Answer 7

Identifying and satisfying customers needs
Building brand image
Increasing customer base
Maintaining customer loyalty

Question 8

Why do customers spending patterns change? And how can a business respond to these changes

Answer 8

Change in incomes
Change in age
Change in tastes, likes and dislikes

Maintain good customer relationships
Keep improving its existing product
Bringing out a new product to keep the customers interest
Keeping costs low