unit 2 :/ Flashcards
(24 cards)
What is a need?
Basic requirement for survival: food, water, shelter, warmth, clothing.
What is a want?
Things that we would like to have that make our life more comfortable and enjoyable.
What do customers want?
Good quality, value for money, low prices, convenience, wide range of products.
If customers are satisfied this will lead to..?
Satisfied customers, customer loyalty, word of mouth.
This leads too…?
Increased sales and profits
Definition of market segmentation?
A market segment is a part of a market that contains a group of buyers with similar characteristics.
Each market segment contains..?
Consumers who buy similar products, have similar customer needs and wants.
What are main streamers?
They stick to well known brands and have conventional leisure aka walking, reading, gardening
What are aspires?
Must have the latest gadgets. Involved in motorbikes, snowboarding.
What is a succeeder?
They like quality, entertaining, socializing and take frequent holidays.
Reformers?
Recycycling, environmentally friendly.
High-flyers?
Spend lots.
Gap in the market?
A situation where no business currently serves the needs/wants of customers for a particular product/service.
Why business’ need competition?
Business’ need to compete with rivals firms to attract customers and generate sales.
Direct and indirect competition?
Direct: selling the same product as you.
Indirect: selling similar/alternative product as you.
How do buisness’ compete?
Price, quality, customer service, range, location, design, brand.
What is market research?
Process of gaining information about customers, competitors and market trends through primary and secondary data.
How market research helps business’?
Identify a gap in the market, analyse competitors, identify customer needs and wants.
Primary research?
Gathering of new information which hasn’t been collected before.
Examples (p)?
Test marketing, surveys, observations, questionnaires, focus groups, interviews.
Secondary research?
Gathering information that has already been collected.
Examples (s)?
Government statistics, newspapers, sales data, the internet.
Pro’s and cons for primary research?
Pro’s: info is up to date, competitors won’t have the info, obtain the info you want.
Cons: it is expensive, time consuming, difficult to obtain, small sample of people.
Pro’s and cons of secondary research?
Pro’s: already available, cheap, can find out about competitors, large sample.
Cons: outdated, difficult to understand, may not be relevant, unreliable.
