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Meeting Customer Needs Flashcards

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1
Q

Define Mass market

A

Attempting to sell goods to satisfy the needs of the whole market

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2
Q

Define niche market

A

A small segment of a market

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3
Q

Characteristics of mass market

A

•Generic products which are broadly similar in form and function

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4
Q

Characteristics of niche markets

A

Specialist products and services are required

Changes in consumer preferences can be rapid and devastating to the market

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5
Q

Advantages of mass market

A

+Huge potential number of customers
+High production levels allow for economies of scale
+Can use mass media advertising

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6
Q

Advantages of niche marketing

A

+Higher profit margins
+Meeting consumer needs more precisely allows for higher price to be charged
+Easier to enter for firms with limited finances

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7
Q

Disadvantages of mass market

A

-High levels of competition
-low adaptability
-high barriers to entry

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8
Q

Niche market disadvantages

A

-lack of economies of scale
-likely to attract competition if successful
-over dependence on a single product or market

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9
Q

Market size can be measured in 2 ways

A

Sales/Market share x 100

Number of target users x purchases expected in a given period

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10
Q

Market share is

A

The amount (%) of sales a business is responsible for in comparison to the whole market

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11
Q

Branding is

A

The process of creating a unique and identifiable name, design, symbol or other feature that differentiates a product/service or firm from its competitors

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12
Q

Market share calculation

A

Totals sales/number of market sales x 100

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13
Q

Market growth is

A

The measure of how much a market has changed

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14
Q

Market growth calculation

A

Change in size/the original size

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15
Q

What is branding used for

A

Established recognition and credibility as-well as trust and differentiation

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16
Q

Dynamic market is

A

A market that changes over time

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17
Q

Why do markets change

A

Changes in trends, prices, substitute products

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18
Q

Innovation

A

Putting a new idea or approach into action. (New product or process)

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19
Q

Dynamic market examples

A

Fashion - new trends
Phone market- getting more expensive as products get more advanced

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20
Q

How can companies adapt to change

A

Innovation
Staying on top of trends
Forecasting

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21
Q

What dynamic factors impact a business

A

PESTLE

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22
Q

What is PESTLE

A

Political economic social technological legal environmental

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23
Q

E commerce is

A

Selling goods and services online

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24
Q

4 ways a business can adapt to its market

A

-innovation
-competitor analysis
-clear strategy
-market research

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25
Advantages of e commerce
Faster buying process Cost reduction No location limitations
26
Disadvantages of e commerce
Potential security threats IT issues Limited connection w customers Shipping logistics
27
Advantages of physical retail stores
Communication w customers Ability to see and try products Branding recognition / high footfall areas No shipping
28
Disadvantages of physical retail stores
Location problems (ppl may not be able to access) Higher costs Limited operating hours
29
Competition is
Other businesses that sell similar or substitute goods to the same target market as you
30
Indirect competitor is
Serves the same customer needs but with a different product or service For example dominos and McDonald’s
31
Competition occurs because
2 or more firms are competing to get the choice of a customer
32
Competition is good for the customer because
They get a choice of different products that have been pushing eachother to be the better and more accessible product
33
Direct competitor is
A competitor that sells the same good as you For example McDonald’s vs Burger King
34
How can competition affect decision making
If a competitor makes a price change you will need to make a similar change to stay competitive
35
Risk is
The exposure a company has to certain factors that will lower its profits or lead to fail
36
Uncertainty is
A state of limited knowledge where it is impossible to exactly describe the existing state or a future outcome
37
Examples of uncertainty
Economic downturn, natural disasters, technological innovations
38
Internal risk factors
Poor personnel management, tech issues
39
External risk factors
political risks from trade wars Cyber attacks Viral social media incidents
40
How can a business protect against uncertainty
Have plan of action Diversify revenue streams
41
Marketing is
Involves the selling and promotion of your products/services through market research, advertising and promotion
42
Advantages of being market orientated
Meet customer needs Identifying new opportunities Staying competitive (trends)
43
Disadvantages of being market orientated
Business may lose sight of their own long term visions and goals Can be time consuming and costly
44
Market orientated meaning and examples
When a business is focused on meeting the needs and demands of its customers in its products. An example could be when a company uses a survey and then improves the priory t based off of the findings
45
Product orientated meaning and example
A business that focuses on improving their products/services rather than solely catering to customer needs. An example could be when a tech company invests a lot of money into making a product much more advanced even though it may not align with customer needs
46
Advantages of product orientated
High quality offerings More control over products so can maintain a unique identity
47
Disadvantages of product orientated
Too focused on improving their product without considering customer interests May not be as responsive to customer trends so could hinder company’s ability to stay competitive
48
Market research is
Methods used to find out information about a market for example customer wants and needs
49
Primary research is
Research carried out by the business themselves
50
Secondary research is
Research gathered from another source
51
Examples of probate research
A customer satisfaction survey
52
Advantages of market research
Helps gain a deeper understanding of target market Helps to indenting trends in consumer behaviour
53
Disadvantages of market research
Time consuming and costly Can be influenced by misleading or bias data leading to misguided decisions
54
Advantage of primary research
Have control over what and who your researching (can tailor it) Engage directly with Target audience
55
Disadvantages of primary research
Time consuming and costly Risk of bias or subjectivity
56
Quantitative data is
Data in form of numbers
57
Examples of quantitative data
Tally or bar chart
58
Examples of secondary research
Study found online or census data
59
Qualitative data is
Data in form of words like descriptions
60
Advantages of secondary research
Quick and less expensive Provides historical data so can see how trends have changed over time
61
Disadvantages of secondary data
Info gathered may not be specific to your needs Limitations to quality or reliability of research
62
Limitations of market research
May be subject to bias Can cause lack in creativity if solely relied upon
63
How can IT be used to support market research
Enables the quick and effective collection of large data samples Provide enhanced visualisation capabilities to help understand data Online surveys and areas to give feedback allow for quicker collection
64
Benefits of using IT for market research
Large data to be analysed and collected quick and easy Allows for visualisation of large data sets Allows for collecting of data
65
Drawbacks of using IT for research
Overlooks qualitative insights Can be challenges in data protecting and security May require certain level of expertise to operate
66
How can businesses use social media to carry out market research
By using social media sites to distribute surveys and questionaires Looking at feedback on comment areas of social media sites Looking at engagement of certain posts
67
Market segmentation
Market segmentation is the process of dividing a larger market into smaller, more specific segments based on various characteristics such as demographics, psychographics, behavior, or geographic location.
68
Benefits of market segmentation
By segmenting the market, businesses can better understand and target specific groups of customers with tailored marketing strategies. This can lead to more effective and efficient marketing efforts,
69
Drawbacks of market segmentation
Can be time consuming and costly and segmenting the market too narrowly could lead to not maximising the target audience
70
Market mapping is
A way for a business to see all products in the map sorted into categories of price and quality
71
Benefits of market mapping
Visual Representation, Competitive Analysis, Strategic Decision-Making: Market Segmentation: Market mapping helps identify gaps in the market and potential target segments for new product offerings.
72
Drawbacks of market mapping
Simplified Representation, Subjectivity, Lack of Dynamic Nature
73
Competitive advantage is
Competitive advantage refers to the unique qualities or attributes that set a business apart from its competitors and allow it to outperform them in the market.
74
Cost advantage
where a business is able to produce and offer its products or services at a lower cost compared to its competitors..
75
Product differentiation is
when a business distinguishes its products or services from those of its competitors through unique features, attributes, or benefits..
76
How (methods) to differentiate your product
incorporating unique features, offering superior quality, providing exceptional customer service, implementing innovative design, or building a strong brand identity.
77
Adding value is
enhancing the benefits or features of a product or service to make it more appealing to customers. This can be done by offering additional features, improving quality, providing excellent customer service, or including bonus items or services.
78
Benefits of adding value
Increased customer satisfaction, improved brand perception, enhanced customer loyalty, and the ability to command higher prices.
79
Drawbacks of adding value
increased production or service costs, potential complexity in managing additional features, and the need for ongoing innovation to stay ahead of competitors.

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