THEME 1, Meeting Customer Needs Flashcards
(16 cards)
What is a mass market?
Product has a wide appeal and is aimed at a large group of buyers
What is a niche market?
Product is aimed at a specific group of buyers, its specialised to meet their particular requirements
What is market share and how does it corelate with market size?
The market share of a business is the proportion of the total market that the business holds.
In a mass market there are likely to be many businesses with smaller market shares
In a niche market there are likely to be fewer businesses with larger market shares
What is a dynamic market?
One that changes frequently due to…
Innovation
Competitors
Legislation changes
Consumer preferences
Explain the pros and cons of online retailing
PROS
Lower FC’s, don’t have to pay for a physical shop
Open 24/7 and customers can buy from anywhere, more convenient for consumer
Customer can compare prices
CONS
More competition
Cyber criminals, business must ensure to protect their customers details
Some customers like to try/see products before they buy so may not want to purchase online. Tackled with free returns/online chat services
What are the 4 P’s(marketing mix)?
Price
Place
Promotion
Product
What is product orientation?
When the business creates the product then finds the market
Often advances in technology fall in this category
What is market orientation?
When the business finds the gap in a market then creates a product to fill it
They invest lots into market research to see if the customers would be willing to buy, in theory there will be a demand for them to supply
Why do businesses need effective market research?
-Finds out customers current needs and wants, may try to anticipate their next needs and wants
-Prediction of how much demand there will be, business can efficiently supply this. It can also help identify falls in sales so businesses can promote product to increase the demand
-Allows businesses to learn how the consumer buys and uses the product, then they can market their product in the best way
-Identify competitors and magpie their ideas
-Gain insight into the market effecting factors(SLEPT)
What are the 2 types of market research?
Primary, questionnaires surveys etc
Secondary, online market data
What is market segmentation?
Dividing the market into groups, each group contains people with at least one similar characteristic
How are markets segmented?
Demographics
Income
Hobbies and interests
How do you position your product in the market?
Using market mapping. High price low price, high quality low quality
What is a competitive advantage?
A factor that allows one business to generate more sales than another
How do businesses gain competitive advantage?
-Lower costs
-Product innovation
-Advertising and marketing
-Product differentiation/USP
-Reliability
-Quality
-Good customer service
-Consumer convenience
ADDING VALUE
What is added value?
Selling price-CPU
Achieved by reducing CPU or increasing selling price
