theme 1: S1 meeting customers needs

Question 1

define the term market?

Answer 1

the term market usually refers to all of the buyers and sellers that trade a particular type of product in a particular place.

Question 2

what is meant by the term market share?

Answer 2

market share is the proportion of the total market sales a business or brand controls.

Question 3

what is the aim of marketing?

Answer 3

the aim of marketing is to help identify, anticipate and satisfy consumer needs and wants profitably.

Question 4

True or False?

Wants are considered to be essential.

Answer 4

False:
needs such as shelter or food are considered to be essential, while wants are the desires that are non-essential.

Question 5

Define the term Mass market.

Answer 5

a market where products are aimed at broad market segments.

Question 6

define the term brand

Answer 6

A name, image or logo that helps on product stand out from its competitors.

Question 7

what is the formula for market share

Answer 7

Market share = sales of business / total sales in the market x100

Question 8

define the term niche market.

Answer 8

a niche market us one in which the products are aimed at a small subset of consumers in the market.

Question 9

what is the purpose of branding?

Answer 9

it is one of the key ways businesses can achieve product of business differentiation

Question 10

True or False?

A dynamic market is one that is subject to rapid or continuous changes.

Answer 10

True:
a dynamic market is one that is subject to rapid or continuous changing.

Question 11

what is meant by the term primary research?

Answer 11

primary research is the process of gathering first-hand information directly from consumers in the target market.

Question 12

what is meant by the term market segmentation?

Answer 12

is the process by which a single market is divided into sub-markets containing consumers with similar characteristics.

Question 13

define the term product orientation.

Answer 13

is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.

Question 14

what is secondary research?

Answer 14

this involves the collection, compilation and the analysis of data that already exists.

Question 15

True or false?

primary research is cheaper and quicker than secondary research.

Answer 15

False:
primary research is usually more expensive and time-consuming than gathering secondary research.

Question 16

state how researcher bias can affect survey findings.

Answer 16

researchers may guide respondants to answer questions in a particular way

Question 17

what is the purpose of market segmentation?

Answer 17

allows firms to precisely target different groups of consumers.

Question 18

True or False?
primary market research may include purchasing market reports from specialist companies to accessing government statistics.

Answer 18

false:
secondary market research may include purchasing reports from specialist companies or accessing government statistics.

Question 19

define the term market orientation.

Answer 19

Is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet those needs.

Question 20

what is meant by the term test marketing?

Answer 20

free samples are provided to consumers in the target market for a limited period to gauge their response to the product.

Question 21

true or false?
all consumers in a market segment behave in the same way.

Answer 21

False:
not everyone within a segment will behave in the same they just share the same characteristics.

Question 22

define the term market positioning.

Answer 22

refers to product launch decisions such as price, quality, branding and customer perception, which position the product in relation to its competitors.

Question 23

what is a market map?

Answer 23

is a two-dimensional diagram that shows attributes or characteristics of a product compared to those of rivals.

Question 24

true or false?
a market map can show more than two criteria.

Answer 24

False:
only two criteria can be chosen from a market map e.g. price and quality.

Question 25

what is market saturation?

Answer 25

exists where more customers who want to buy a product have already done so.

Question 26

define the term competitive advantage.

Answer 26

competitive advantage refers to the features of a business and its products that are perceived as superior to those of its rivals by customers.

Question 27

what is product differentiation?

Answer 27

is an attempt by a business to distinguish its products fro those of its competitors.

Question 28

two examples of source of competitive advantage.

Answer 28

quality delivery times low price reliability

Question 29

define the term added value.

Answer 29

is the difference between selling price and cost of the inputs required to create the product or service.

Question 30

true or false? adding value raises costs for a business.

Answer 30

True: adding value raises costs, but it is worth the increase in selling price outweighs the higher costs associated with the method.