THEME 1: SECTION 1 (MEETING CUSTOMER NEEDS) Flashcards Preview

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Flashcards in THEME 1: SECTION 1 (MEETING CUSTOMER NEEDS) Deck (28)
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1
Q

Define the term MARKET

A

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

2
Q

Define MASS MARKETS

A

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

3
Q

Define NICHE MARKETS

A

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

4
Q

Define MARKET SIZE

A

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

5
Q

Define MARKET SHARE

A

The proportion of the total market that the business holds

6
Q

Define SALES GROWTH

A

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

7
Q

Define MARKET GROWTH

A

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

8
Q

What is the MARKET SIZE FORMULA

A

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

9
Q

What is the MARKET SHARE EQUATION

A

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

10
Q

What is the market growth equation

A

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

11
Q

What is the SALES GROWTH FORMULA

A

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

12
Q

Define and explain DYNAMIC MARKETS

A

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

13
Q

What is the difference between direct and indirect competition?

A

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.

14
Q

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

A

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.

15
Q

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

A

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

16
Q

Define MARKET RESEARCH

A

The collection and analysis of market information.

17
Q

Define PRIMARY RESEARCH with 2 examples

A

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

  • Focus groups
  • surveys
18
Q

Define SECONDARY RESEARCH and 2 examples

A

Secondary research is, collecting information that already exists.

  • Books
  • Magazines
19
Q

What are the pros and Cons of qualitative market research?

A

Pros = new perspective
- understand attitudes

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

20
Q

What are the pros and Cons of quantitative market research?

A

Pros = Quicker/ cheaper
- Samples are more randomised

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

21
Q

Define QUANTITATIVE ANALYSIS

A

Numerical data collected through closed questions such as multiple choice.

22
Q

Define QUALITATIVE ANALYSIS

A

Opinion based research gathered through open questions.

23
Q

What are the pros and Cons of Primary market research?

A

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

Cons = Expensive
- Time consuming

24
Q

Three ADVANTAGES of MARKET RESEARCH

A
  • identifies threats and opportunities
  • Predicts trends
  • Keep up with competitors
25
Q

Define MARKET POSITIONING (MAPPING)

A

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

26
Q

What measures could be used on the market map?

A

Price vs Quality

Price vs Demographic

27
Q

Define Product orientation with pros and cons

A

-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

28
Q

Define Market Orientation with pros and cons

A

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)