Chapter 3.1 Flashcards
(20 cards)
What is the role of marketing in identifying customer needs?
To understand what customers want, where they want to buy, and after-sales services they require.
Why do businesses need to satisfy customer needs and demands?
To sell the right product at the right place and price, avoiding loss of revenue and profit.
What is the importance of maintaining customer loyalty?
Building relationships to keep customers loyal, leading to repeat business.
How does building customer relationships help businesses?
It allows businesses to adapt to changing customer needs, making market research easier.
Why do consumer spending patterns change?
Due to changes in taste, technology, income, aging population, and health needs.
What are the reasons some markets are more competitive than ever?
Globalization, better transportation, and the growth of internet shopping.
How can businesses respond to market changes?
By maintaining customer relationships, improving products, developing new products, and keeping costs low.
What is mass marketing?
Selling the same product to the entire market, aiming to appeal to everyone.
What are the advantages of mass marketing?
High sales, lower average costs, and potential for growth.
What are the disadvantages of mass marketing?
High competition and products may not meet specific customer needs.
What is niche marketing?
Selling products to a small segment of the market with specific needs.
What are the advantages of niche marketing?
Higher prices for specialized products and less competition.
What are the disadvantages of niche marketing?
Smaller sales, higher risk, and the potential for more competition.
What is market segmentation?
The process of dividing the market into subgroups based on characteristics like income, age, and lifestyle.
What are the benefits of market segmentation?
Tailored products, easier market research, and better-targeted advertising.
How does social-economic segmentation affect marketing?
High-income groups demand luxury products, while lower-income groups seek affordable goods.
How does age affect market segmentation?
Different age groups have different needs, such as babies needing nappies or teenagers preferring trendy products.
How does location influence market segmentation?
People in different regions have different spending habits, tastes, and needs.
How does gender affect market segmentation?
Men and women may prefer different products, like razors for men or makeup for women.
How does lifestyle affect market segmentation?
People’s spending habits vary depending on their life stage, such as single, married, or with children.
