Market Needs and Business Functions Lecture Notes

A set of flashcards covering the definitions of market needs, types of market research, influencing factors, and the primary business functions described in the lecture.

Market Need

A problem, requirement, want or demand that consumers have which a business can satisfy through a product or service.

Market Research

An activity that helps businesses understand customers, demand, market size, economic conditions and consumer characteristics.

Needs

Things consumers require to solve a problem or meet an essential requirement, such as food, clothing, housing, or education.

Wants

Products or services that consumers would like to have but can live without, such as designer clothing, entertainment, or luxury cars.

Surveys

A market research method where businesses ask potential customers questions about their preferences, problems, and willingness to pay.

Interviews

A method to obtain detailed information where people explain the reasons why they have a particular need.

Observation

Identifying problems or behaviours by watching consumers, such as noticing when customers struggle to find a specific product.

Competitor Research

Studying other businesses to see what they sell, their prices, target customers, strengths, weaknesses, and how they advertise.

Secondary Research

Information already collected by other organisations, such as government statistics, industry reports, newspapers, and academic research.

Economic Factors

Changes in income, employment, inflation and prices that can affect what consumers can afford.

Technological Changes

New technology that creates completely new needs, such as how smartphones created demand for apps, chargers, and mobile data.

Social and Cultural Changes

Changes in lifestyles, values and social behaviour that can affect consumer preferences.

Demographic Factors

Consumer characteristics including age, income, family size, location, education and occupation.

Trends

Factors like fashion, entertainment and social-media that can cause demand for particular products to increase or decrease.

Business Function

A particular area of activity that is necessary for a business to operate effectively, with different functions being interdependent.

General Management

The function responsible for planning, organising, leading and controlling the activities of the business and making decisions about strategies and resources.

Marketing Function

Focuses on understanding customers and getting products or services to the people who are most likely to buy them.

Financial Function

Deals with the money and financial resources of the business, including budgeting, managing cash flow, and measuring profitability.

Purchasing Function

The function involved in obtaining the goods, materials, equipment and services that a business needs at the right quality, price and time.

Production / Operations Function

Responsible for creating goods or delivering services efficiently, at an appropriate quality and cost.

Human Resources Function (HR)

Focuses on the people within the business, including recruitment, selection, training and managing employee wellbeing.

Administration / Information Management

Involves organising the information, documents and records needed to operate the business, such as filing, record-keeping and processing information.

Public Relations (PR)

The function of building and maintaining a positive relationship and image between the business, the public and its stakeholders.