chapter 10

Question 1

what is the role of marketing

Answer 1

1.Identifying customer needs
2.Satisfying customer needs
3.Maintaining customer loyalty
4.Gain information on customers
5.Anticipate changes in customer needs:

Question 2

objectives of marketing department

Answer 2

1.raising awareness of product/service
2.increasing sales revenue->increasing market share
3.increasing profitability
4.business growth
5.improving brand image

Question 3

what is a market

Answer 3

a place where buyers and sellers come together to buy and sell

Question 4

what is a target market

Answer 4

individuals or organizations identified by a business as the customer of their product

Question 5

what is consumer market:

Answer 5

products sold to the final customer

Question 6

what is industrial market

Answer 6

products sold to other businesses

Question 7

what is a business environment

Answer 7

the combination of internal and external factors that influence the operation of business

Question 8

why should a business anticipate changes/why costumers spending patterns change/why is the business environment constantly changing

Answer 8

1.changes in taste and fashion
2.changes in technology
3.changes in income
changes in population size and structure:
a higher population size means more chances for market to increase in size->increasing business sales
“ageing population”:lower sales on children’s products and more sales for elderly products

Question 9

why some markets become more competitive

Answer 9

Globalization: products are being sold in markets all over the world, so there are more competitors in the market
Internet/E-Commerce: customers can now buy products over the internet form anywhere in the world, making the market more competitive
Improved Transportation: easier to get products from one part to another part of the world

Question 10

How business can respond to changing spending patterns and increased competition?

Answer 10

1.maintain good customer relationship
2.keep improving its existing products, so that sales is maintained
3.improve efficiency->reduce average cost->ability to decrease price->increase demand->increase sales

Question 11

what is niche market

Answer 11

a highly specialized sub-part of a larger market

Question 12

advantages of niche market

Answer 12

1.less competition
2.more focused products
3.ability to charge higher prices as customers want exclusive and high status products

Question 13

disadvantages of niche market

Answer 13

1.less opportunities for economies of scale
2.small changes in spending patterns can affect the business->high risk

Question 14

what is mass market

Answer 14

selling the same product to the whole market

Question 15

advantages of mass market

Answer 15

1.higher sales->higher profits->better chance for business growth
2.benefit from economy of scale
3.Risks are spread, unlike in a niche market. If the product isn’t successful in one market, it’s fine as there are several other markets

Question 16

disadvantages of mass market

Answer 16

1.higher competition
2.higher cost of advertising
3.provides only standardized products, so unable to give customers their exact needs

Question 17

what is market segmentation

Answer 17

dividing the whole market into segments by consumers’s characteristics and targeting different products to each segment

Question 18

what is market segment

Answer 18

a part of the whole market in which consumers have specific characteristics

Question 19

advantages of segmentation

Answer 19

1.Makes marketing cost-effective, as it only targets a specific segment and meets their needs.
2. higher sales and profitability
3. increased opportunities to increase sales

Question 20

ways of segmenting

Answer 20

1.age
2.income
3.location
4.gender
5.lifestyle