meeting customer needs Flashcards
define mass market
a mass market is referenced as a large market full of people from widely different backgrounds. often know as undifferentiated.
2 differences between primary and secondary market research
primary research is costly and often specifically catwered to the different functions of the business. whereas, secondary research is free and often very general so not specific to the businesses key functions - not as helpful.
define market segmentation
the process of dividing the market up into groups of people with different intersts, wants and needs so that the business can directly appeal their product to a specific audience to maximise sales.
price inelastic
this means that the products demand is not sensative to fluctutations in price. a price inelastic value should sit in between the numbers of -1 - 1.
price elastic
this is when a products demand is sensative to fluctuations in price. the value of a price elastic good should be euther below -1 or above 1.
define a gap in the market
a gap in the market is an opportunity for businesses to exploite a product that has not yet entered the market. although gaps in the market are veiwed as good opportunities - they can be unreliable as there are often reasons they havent been explouted yet.
market mapping
identifies all products in the market and compares them on the basis of economic manufacturer and quality. this can help spot gaps in the market and analyse where competition sits withing the market.
the difference between market mapping and market segmentation
market mapping overveiws all businesses withing the market, whereas market segmentation divides a market up into specific groups.
define the term added value
this is the mark-up differnce ebtween the gross price of the product and the selling price of the procuct. added value is determent of external factors as well as price elasticity.
why is competition in niche markets a negative thing
the target audience is already very limited, compounded with the factor of the selling price having to be significantly higher than mass market items due to the unique nature of the product - lacking economies of scale.
