Anticapting Customer Needs

Question 1

What are the two types of purchases or buyer/consumer behaviour ?

Answer 1

Impulse and planned purchases

Question 2

What is impulse purchasing?

Answer 2

Purchasing without forethought usually irrationally or emotionally

Question 3

What is planned purchasing?

Answer 3

Making an arrangement to purchase in advance usually rational

Question 4

What is niche marketing?

Answer 4

Where a business targets smaller segments of a large market, where customers have specific needs and wants

Question 5

What is mass marketing?

Answer 5

Business sells into the largest part (majority) of the market where there are many similar products on offer

Question 6

Two advantages of niche marketing

Answer 6

Less competition
Able to charge a higher price

Question 7

Two disadvantages of niche marketing?

Answer 7

Lack of EOS
Over dependence on a single market or product

Question 8

2 features of mass marketing?

Answer 8

Customers form majority
Customers needs and wants are less specific

Question 9

What are the three marketing models?

Answer 9

AIDA
DAGMAR
ATR

Question 10

What does AIDA stand for?

Answer 10

Attention
Interest
Desire
Action

Question 11

What does action mean in Aida ?

Answer 11

Buying the product

Question 12

What is a crucial feature of AIDA?

Answer 12

Each stage must be passed through to achieve a sale

Question 13

Is AIDA a promotional model for advertising or a promotional campaign?

Answer 13

Promotional model for advertising

Question 14

What does DAGMAR stand for ?

Answer 14

Defining advertising goals
Measured advertising results

Question 15

The purpose of DAGMAR is to formulate a strategy for ?

Answer 15

A promotional campaign

Question 16

What are the 3 main steps of DAGMAR?

Answer 16

-Define the goals (what is the purpose of campaign)
-Plan campaign with goals in mind
-measure success against previous set criteria e.g. increase in market share

Question 17

What does ATR stand for ?

Answer 17

Awareness
Trial
Repurchase

Question 18

What is the strategy behind ATR?

Answer 18

A- Make customers aware of the product
T- get customers to buy product
R- ensuring the trial was so good they purchase again

Question 19

One advantage of AIDA?

Answer 19

+Simple to understand

Question 20

2 disadvantages of AIDA?

Answer 20

-May stimulate interest but not action
-Customers may be unable to act in desire ( too expensive) therefore the business may need to carefully segment the market

Question 21

Advantage of DAGMAR?

Answer 21

+Allows for assessment of whole campaign

Question 22

Disadvantages of DAGMAR?

Answer 22

-too simple for a campaign
-only applies to campaign

Question 23

One advantage and disadvantage of ATR?

Answer 23

-can’t guarantee the first purchase is made
-no repurchase may be for a reason outside there control
+it considers the value of post sale support

Question 24

what are the two types of orientation ?

Answer 24

Customer/ market
Product

Question 25

What is customer/ market orientation?

Answer 25

Business responding to customer needs and wants or needs and wants of the market

Question 26

Product orientation?

Answer 26

Business develops products based on what it is good at doing

Question 27

Advantage and disadvantage of customer orientation?

Answer 27

+will match needs and wants do lead to likely success in market - market research is time consuming and costly

Question 28

+ & - of product orientation?

Answer 28

+great innovation, a need the customer might not be aware of - business will need to find a customer to sell to

Question 29

What is market segmentation?

Answer 29

The process where the market is split into different groups which have different characteristics and needs.

Question 30

What are some types of market segmentation?

Answer 30

Age Gender Location Income Occupation Religion Interest/taste

Question 31

Advantages of market segmentation?

Answer 31

+Can take advantage of new opportunities to grow +target advertising is cost effective +advertising can be better matched to specific needs +can maximise profits on some cases by matching pricing strategies to different consumers

Question 32

Limitations of market segmentation?

Answer 32

-risk of over segmentation (excluding possible customers) - lack of information on market will lead to poor excursions -difficultly messing and predictingconsumer behaviour of different groups -not easy to reach target segment even once identified