1.1 meeting customer needs

mass market definition

where a business sells into the largest part of the market, where there are many similar products on offer

mass market characteristics

customer needs and wants are more "general" & less "specific"

associated with higher production output and capacity

niche market definition

small specialised subsection of the mass market

niche market characteristics

customers have specific needs and wants

what is a dynamic market

one thats subject to change

example of dynamic market

online retailing

constantly changing, developing, expanding and offering customers new products and new ways to shop

market share formula

sales of x/ total sales in whole market x100

how does competition affect a business

business must produce a good quality product or service, or their customers will go elsewhere

whats the differance between risk and uncertaincy

risk involves measurable probabilities (known),

uncertainty makes outcomes unpredictable and difficult to assess (unknown)

what does product orientated mean

where the business develops products based on what it is good at making or doing

what does market orientated mean

satisfying customers’ needs are the priority

whats primary research

advantages and disadvantages

new info specific to bus

unique and up to date data

costly and time consuming

whats secondary research

advantages and disadvantages

already exists

quick and easy to find

may be innacurate

whats quantative data

numerical, graphs and charts

whats qualatitive data

customers thoughts and feelings towards a product

limitations of market research

limited by sample size and bias of researchers

how can markets be segmented

income

lifestyle

geography,

demographic

age

what is the use of ICT to support market research

Websites can generate a large amount of analytical data which is useful for marketing decision

social media creates data about followers, polls can be used as quick primary research

what is market mapping

plotting brands on a map, to identify a gap in the market

what is competative advantage

micheal porters book “competative advantage” says the main idea is that a business can win by being cheaper or by through product differentiation

what is added value

increase in value a business gives to a product or service before offering it to customers