ch10 marketing compt. nd the customer

Question 1

Define a Market

Answer 1

A place that COMBINES BUYERS and SELLERS of a particular good

Question 2

Define Marketing

Answer 2

the management process responsible for identifying, anticipating and satisfying consumers requirements profitably

Question 3

What is a role of marketing in a business

Answer 3

1. identifying customer needs
2. anticipate changes in customer needs
3. satisfying customer needs
4. maintaining customer loyalty

Question 4

What are the objectives of marketing

Answer 4

1. raises awareness of their product
2. increase sales revenue and profits
3. increase and maintain market share
4. enter new markets abroad
5. develop new products or improve existing products

Question 5

What are Market changes that could occur

Answer 5

1. Customer spending patterns may change (Change in Customer Demand)
2. Increasing Market competition

Question 6

what are the Reasons for change in customer demand or spending pattern?

Answer 6

CHANGE IN,
1. price of the product
2. price of competitors
3. their taste and fashions
4. technology
——
5. ageing population

Question 7

why are Markets becoming more competitive?

Answer 7

1. Government Interventions in the market
2. Globalization and removal of trade barriers between countries
3. improvement of transportation infrastructures
4. Internet/E-commerce (online shopping)

Question 8

how can a Business respond/take action after Market change

Answer 8

1. maintaining good customer relationships
2. increase promotion
3. look for new markets
4. keep improving existing products
5. introduce new products

Question 9

Define Niche MARKET

Answer 9

a very small segment of the whole market

Question 10

Define Niche MARKETING

Answer 10

Identifying the needs and wants of a small segment of a larger market by developing products to suit it

Question 11

what are the ADV of niche market/ing

Answer 11

1. small firms can survive in niche markets
2. if there are no or very few competitors firms can sell products at a high price and gain high profit margins
3. firms can focus on the needs of just one customer group

Question 12

what are the DISADV of niche market/ing?

Answer 12

1. Lack of Economies of Scale
2. high risk of over dependence on a single product or market
3. likely to attract competition if successful

Question 13

Define Mass Marketing (IMPORTANT)

Answer 13

Selling the SAME PRODUCT to the whole market with no attempt to target groups with in it

Question 14

what are the ADV of Mass Marketing

Answer 14

1. selling to a large market
2. can benefit from economies of scale
3. risks are spread
4. more chances for the business to grow

Question 15

what are the DISADV of Mass Marketing

Answer 15

1. they will have to face more competition
2. not all markets are large enough to support mass marketing approach
3. products are too standardized

Question 16

define a Market Segment (IMPORTANT)

Answer 16

a sub group of a larger market in which consumers have similar characteristics and preferences

Question 17

Define Market Segmentation

Answer 17

the process of dividing a market of potential customers into groups or segments based on different characteristics then targeting specific product for each segment

Question 18

what are the ADV of (market) segmentation

Answer 18

1. goods and services can be designed to meet specific needs of consumers in each segments
2. small firms which may not be able to compete in the whole market can concentrate on 1 or 2 segments
3. makes marketing cost effective
4. it may be possible to change higher prices for very similar products between different segments