meeting customers needs

Question 1

market

Answer 1

all buyers and sellers that trade a product

Question 2

mass market

Answer 2

aimed at large groups of buyers
product has wide appeal
high sales volume
can achieve economies of scale
products cheaper to produce

Question 3

adv and dis of mass markets

Answer 3

adv-achieve EOS-cheaper to produce products meaning can sell at cheaper prices
dis-hard to raise enough capital
lots of competition

Question 4

niche market

Answer 4

aimed at specific buyers
product specialised to meet particular requirements
more risky then mass market
narrower range of customers
larger market share

Question 5

adv and dis of niche markets

Answer 5

adv-can charger premuim prices as offering something unquie
dis-can easily be effected by changes in consumer trend s
more risky as narrower market
less likely to achieve eos

Question 6

market size

Answer 6

total value of sales
total volume of consumers

Question 7

market share

Answer 7

proportion of total market business holds

Question 8

branding

Answer 8

logo
differentiates product from buyers
customers can easily recognise

mass markets more businesses selling simialr products so branding is important

Question 9

dynamic markets

Answer 9

adapt to change
change and evolve quickly

Question 10

reasons why dynamic market may change

Answer 10

consumer preference-fashion and advancements in technology

innovation-new products emerge

ways people want to shop-online shopping

competitors leaving or enter market

changes in legislation-taxes placed on goods
e.g tax on sugary drinks

study tip: SICCL

Question 11

definition of online retailing

Answer 11

selling products via internet

Question 12

adv of online retailing

Answer 12

business costs lower-no physical shop or hire as many staff

allows them to charge lower prices

customers can order any time/anywhere

customers can easily compare prices

Question 13

dis of online retailing

Answer 13

more competition as can easily shop around

most customers like to see products before purchasing-especially luxury/expensive items

delivery costs

Question 14

direct competition

Answer 14

when two or more businesses sell similar products to appeal same group

e.g TESCO, ASDA

Question 15

indirect competition

Answer 15

two or more products sell different products but to same target customers

e.g takeaways, chinese, indian

Question 17

marketing mix

Answer 17

place
price
product
promotion

Question 18

how does competition influence on the decisions a firm makes about its marketing mix

Answer 18

product-means product they provide must be of a good quality
if not, customers can easily switch
need to make sure their products are distinctive from other competition

promotion-have to try hard to get their product noticed and encourage customers to buy them over competitor products
lot of promotional campaigns, adversting in competitve markets
may focus on branding
may use celebrity endorsement to try to get customers to buy products

pricing-may us competitive pricing
penetration pricing-low to high
price skimming-high to low

place-need to make sure its easy for customers to access their product
e.g lots of business selling online

Question 19

risk

Answer 19

taking risk, probabilities of different outcomes are known
something that goes wrong
controllable

Question 20

uncertainties

Answer 20

unexpected events
could happen but hard to predict
uncontrollable

e.g hurricane

Question 21

product orientation

Answer 21

ocus on product rather then what consumers want

use technology to develop new products
and functions they think consumers will like

create new innovative products and hope consumers will like them

e.g APPLE

Question 22

market orientated business

Answer 22

usiness focuses more on selling products that match consumers preferences

invests in market research

finds out what consumers want

more modern approach

less risky then product orientation

Question 23

market research

Answer 23

collection and analysis of market information

Question 24

quantitative market research

Answer 24

numerical
facts and figures
multiple choice questions
e.g pick a b or c

Question 25

qualitative market research

Answer 25

based on opinions of consumers
open questions
answer isn’t restricted

Question 26

adv of quantitative market research

Answer 26

easy and quick to analyse

Question 27

dis of quantitative market research

Answer 27

unable to elaborate

Question 28

adv of qualitative market research

Answer 28

more informative as answers are flexible

Question 29

primary market research

Answer 29

where business gathers new data

questionnaires
surveys
observations
sampiling