THEME 1: SECTION 1 (MEETING CUSTOMER NEEDS)

Question 1

Define the term MARKET

Answer 1

The buyers and sellers that trade a particular type of product in a particular place

Question 2

Define MASS MARKETS

Answer 2

Markets with products aimed at a large demographic, often standardised products.

Question 3

Define NICHE MARKETS

Answer 3

Products aimed at a specific demographic of buyers, often specialised products

Question 4

Define MARKET SIZE

Answer 4

The total value of sales or consumers in that market over a certain time period

Question 5

Define MARKET SHARE

Answer 5

The proportion of the total market that the business holds

Question 6

Define SALES GROWTH

Answer 6

The changes in a company’s sales from one period to the next.

Question 7

Define MARKET GROWTH

Answer 7

The change in the size of a market for a product or service over time.

Question 8

What is the MARKET SIZE FORMULA

Answer 8

The sum of all sales in the market ( in terms of value or volume)

Question 9

What is the MARKET SHARE EQUATION

Answer 9

Total sales of the business / total sales of the market ( x 100)

Question 10

What is the market growth equation

Answer 10

new market size - old market size / old market size (x 100)

Question 11

What is the SALES GROWTH FORMULA

Answer 11

new sales - old sales / old sales (x 100)

Question 12

Define and explain DYNAMIC MARKETS

Answer 12

Markets that change and evolve rapidly. Due to: changing consumer preferences, innovation, competition or technology changes.

Question 13

What is the difference between direct and indirect competition?

Answer 13

Direct competition = two or more businesses selling similar products that appeal to the same demographic
Indirect competition = when two or more businesses sell products that are different but compete for the same demographic.

Question 14

Define MARKETING MIX, and what are the aspects in it?

Answer 14

The Marketing mix is a combination of factors that can be controlled by a company to influence consumers to purchase its products. It includes Product, Promotion, Pricing, Place.

Question 15

What are the different characteristics of a mass and niche market?

Answer 15

Mass market = appeal to more people, low-profit margins, high competition, more consumers,
Niche Markets = appeals to a small demographic, costly, risky, less competition

Question 16

Define MARKET RESEARCH

Answer 16

The collection and analysis of market information.

Question 17

Define PRIMARY RESEARCH with 2 examples

Answer 17

Primary research is when new information is gathered by the business and is exclusive to them

• Focus groups
• surveys

Question 18

Define SECONDARY RESEARCH and 2 examples

Answer 18

Secondary research is, collecting information that already exists.

• Books
• Magazines

Question 19

What are the pros and Cons of qualitative market research?

Answer 19

Pros = new perspective
- understand attitudes

Cons= Time consuming / smaller sample size
- possible bias due to circumstances of the
applicant

Question 20

What are the pros and Cons of quantitative market research?

Answer 20

Pros = Quicker/ cheaper
- Samples are more randomised

Cons = cannot determine if answers are true or not
- Shows correlation but doesn’t explain it

Question 21

Define QUANTITATIVE ANALYSIS

Answer 21

Numerical data collected through closed questions such as multiple choice.

Question 22

Define QUALITATIVE ANALYSIS

Answer 22

Opinion based research gathered through open questions.

Question 23

What are the pros and Cons of Primary market research?

Answer 23

Pros = specific
- ensures its up to date with current situations

Cons = Expensive
- Time consuming

Question 24

Three ADVANTAGES of MARKET RESEARCH

Answer 24

• identifies threats and opportunities
• Predicts trends
• Keep up with competitors

Question 25

Define MARKET POSITIONING (MAPPING)

Answer 25

Plotting competitors and their products on a matrix to understand their behaviour and spot a gap in the market. -Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors

Question 26

What measures could be used on the market map?

Answer 26

Price vs Quality | Price vs Demographic

Question 27

Define Product orientation with pros and cons

Answer 27

-The attitude of a company that believes the product comes first and persuading customers to buy it follows. Pros: Efficient, economies of scale Cons: missing market opportunities, not meeting needs = lowers demand

Question 28

Define Market Orientation with pros and cons

Answer 28

prioritizes identifying the needs and desires of consumers and creating products and services that satisfy them. Pros: Increased customer loyalty, customer satisfaction Cons: decreases differentiation and USP, reduces innovation and creativity (could leader to being less flexible with changing tastes etc)