Meeting consumer needs - 1.2 0.0 / 5 ? BusinessMeeting consumer needsA2/A-levelEdexcel Created by: RubyRosannaCreated on: 05-09-23 21:09 What is a market? A place where buyers and sellers meet in order to exchange goods & services 1 of 27 What is mass marketing? attempting to sell to the whole market, generic products that are very similar 2 of 27 What is niche marketing? Selling to a specific segment of the market to suit specific customer needs 3 of 27 What are the benefits of mass marketing? - huge customer base - economies of scale = lower production costs - mass media advertising 4 of 27 What are the benefits of niche marketing? - meet specific consumer needs = higher price - higher profit margins - easier entry 5 of 27 What are all markets? dynamic 6 of 27 Why is online retailing important? - ensure the product is widely available to consumers - keep up with competitors 7 of 27 What are the different reasons markets change? - political - economic - social - technological - legal - environmental 8 of 27 What is vital in identifying changes in the market? Market research + understanding of trends 9 of 27 What does increased competition create the need for? - to drive down costs - maintain competitive prices - to be innovative - maintain high quality 10 of 27 What is the difference between risk and uncertainty? Risk is quantifiable whereas uncertainties are the factors causing the risk 11 of 27 What is the difference between product and market orientation? Product - considers internal factors before changes in the market Market - consumers views and behaviours at the centre of decision making 12 of 27 What are some advantages of primary research? - specific - up to date - understand customer psychology 13 of 27 What are some advantages of secondary research? - free - market overview - large-scale + reliably produced 14 of 27 Disadvantages of primary research - expensive - risk of bias - might have to compare with other information to understand - time-consuming 15 of 27 Disadvantages of secondary research - out of date - doesn't suit particular needs - expensive to buy published reports - available to competitors 16 of 27 Methods of secondary research - internet - trade press - government statistics - past internal sales figures 17 of 27 Methods of primary research - surveys - observation - focus groups - interviews 18 of 27 What are the two major reasons market research data may be unreliable? - sample size too small - sample bias 19 of 27 What is market segmentation? discovering ways to split up a market into different groups of consumers with similar characteristics & needs 20 of 27 Benefits of market segmentation? - products designed to suit specific customers - higher price charged - easier to target consumers to promote to 21 of 27 What is market positioning? deciding exactly what image you're creating for your product relative to rivals 22 of 27 What does a market map allow? A business to identify gaps in the market 23 of 27 What are the two main ways to have competitive advantage? - be the lowest cost producer = cheaper prices - sustainable point of differentiation = long term 24 of 27 What is product differentiation? attempting to make your product seem more desirable in the eyes of the consumer compared to rivals 25 of 27 What are examples of perceived product differentiation? - branding - advertising - sponsorship - celebrity endorsement 26 of 27 What is added value? difference between the cost of brought-in goods and services and the selling price of a product 27 of 27
Comments
No comments have yet been made