1.1 - meetinv customer needs

(1.1) what is a market

Any place where buyers and sellers can meet

(1.1) what is the aim of marketing

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

(1.1 A) characteristics of a mass market

(1.1 A) characteristics of a niche market

(1.1 A) how to measure market size

The size of a market can be measured through sales volume or sales value:

(1.1 A) what is market share and how do you calculate it

(1.1 A) what is a brand

(1.1 A) what is the purpose of branding

(1.1 B) what is a dynamic market

(1.1 B) benefits of online retailing for businesses and customers

✅ Provides business access to more consumers, including internationally
✅ Enables longer trading hours as the business is open 24/7
✅ Cheaper to run as it lowers fixed and variable costs compared to bricks and mortar retailers
✅ Consumers can shop at a time that suits them

(1.1 B) drawbacks of online retailing for businesses and customers

❌ There may be high costs for website development, maintenance, and promotion
❌ High levels of competition mean that it will be expensive to make a website stand out
❌ There is a lack of personal contact with customers
❌ Consumers may find it difficult to return unwanted products
❌ Online purchasing opens consumers up to credit card fraud

(1.1 B) why do markets change

(1.1 B) what is product innovation

Product innovation involves the adaptation or improvement of existing products, e.g. improved video cameras on laptops

(1.1 B) what is process innovation

Process innovation involves the adaptation or improvement of existing processes, e.g. just in time stock control

(1.1 B) what is market growth

Market growth is the measurement of the change in the entire market, expressed as a percentage of the original size

(1.1 B) what causes market growth

(1.1 B) how do businesses adapt to change

(1.1 C) what is competition

(1.1 C) impacts of competition on consumers

✅ businesses offer lower prices
✅ businesses produce better quality products
✅ businesses provide better customer service
❌ the absence of competition reduces incentives for businesses to innovate, be efficient or offer consumers lower prices

(1.1 D) what is risk

(1.1 D) what is uncertainty

(1.2 A) what is product orientation

(1.2 A) what is market orientation

An approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs

(1.2 B) what is market research

The objective collection, compilation and analysis of information about a market

(1.2 B) what does market research help do

(1.2 B) what is primary research

(1.2 B) what are some methods of primary research

(1.2 C) evaluation of primary research

✅ focused on the needs of the business and will not be available to its rivals
✅ in

(1.2 B) what is secondary research

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

(1.2 C) evaluation of secondary research

✅ Information is already available and so is quicker to collect than primary research, thereby saving time
✅ Information is often free and is cheaper to collect, leading to lower costs compared to primary research
✅ Suitable for a small business that lacks a large marketing budget
❌ Information has been collected for other purposes and so may lack relevance or may not be factually correct
❌ Can be expensive to purchase market specific secondary data from specialist companies
❌ Information may be out

(1.2 D) how are company websites used to support market research

(1.2 D) how is social networking used to support market research

(1.2 D) how are data bases used to support market research

(1.2 E) what is market segmentation

(1.2 E) evaluation of market segmentation

✅ Recognises that consumers are not all identical
✅ Products and marketing activities can be altered to meet different needs of different groups of consumers and targeted more precisely
✅ Less expensive and wasteful than marketing products at wide market segments
✅ May increase loyalty if the consumer feels that their needs are being met
❌ Not everyone within a segment will behave in the same way
❌ It may be difficult to identify a segment and consumers can belong to multiple segments at the same time
❌ Segmentation requires more detailed market research, which can prove costly
❌ A segment may be identified but it may be too small and unprofitable to cater for

(1.3 A) what is market positioning

(1.3 A) what is market mapping

(1.3 A) benefits of market mapping

✅ Market gaps can be identified which may enable a business to come up with ideas for new products
✅ Comparisons can be made between a business' products and those of its rivals

(1.3 A) limitations of market mapping

❌ A gap in the market may exist because it is not profitable to fill
❌ Mapping a market may require primary research which can be expensive
❌ Only two criteria can be chosen which may prove too simplistic
❌ Markets are often dynamic and a market map only provides insight at a specific point in time

(1.3 B) what is a competitive advantage

(1.3 B) ways a firm can gain a competitive advantage

(1.3 C) what is product differentiation

(1.3 D) what is adding value

the difference between the price that is charged to the customer and the cost of inputs required to create the product or service

(1.3 D) methods of adding value