1.1 Meeting customer needs

Define market

Where buyers and sellers meet to exchange goods and services in real life or virtually

Define marketing

The management process associated with identifying and satisfying customer needs

Define niche marketing

Targeting smaller segments where customers have specific needs / wants

Define mass marketing

Targeting a large part of the market with more competitiors

Describe market size

An indication of potential sales in volume and sales

Define market growth

An indication of new competition calculated with value and volume

Define market share

The split of the market between competitors

Define invention

Process of making something

Describe innovation

The application of new inventions into marketable products

Explain competitive advantage

The ability to add value to a product over rival products

Define risk

A possibility of issues arising

Define uncertainty

The possibility of uncontrollable events

List two benefits of niche marketing

• higher price goods

• more brand loyalty

List three negatives of niche marketing

• fewer customers

• “all eggs in one basket”

• over dependence

List two benefits of mass marketing

• more customers

• less focus on quality/customer service

Name one negative of mass marketing

• more competition

Name the two types of innovation

Process innovation and product innovation

Explain the importance of Market Research

It is important as customers differ in their needs and wants

Describe product orientation

The process of developing a product based on success

Describe market orientation

The process of responding to customer needs / wants and designing products accordingly

Why is market orientation seen as better than product orientation

• more dynamic

• customers are more demanding

• lower barrier to market entry

Define primary research

By collecting data first hand

Define secondary research

Previous data found from other sources

Name three benefits to primary research

• tailored

• reliable

• in-depth

Name three negatives to primary research

• expensive

• time consuming

• bias risk

Name three benefits to secondary research

• cheaper

• quicker

• wider sample

Name two negatives to secondary research

• old data

• not applicable

Describe qualitative data

Consisting of opinions, beliefs and attitudes

Name two benefits of qualitative research

• more understandig

• essential for new products

Name two negatives of qualitative research

• expensive

• likeliness of opinion bias

Define quantitative

Including data and statistics

Name two benefits of quantitative research

• easy to analyse

• easy to compare

Name two negatives of quantitative research

• focus on data not why

• not reliable

Define sampling

Collecting data from a group representative of the population

Define segmentation

Splitting a population into groups based on age, demographic and income