3.1 Marketing, competition and the customer Flashcards Preview

IGCSE Business Studies > 3.1 Marketing, competition and the customer > Flashcards

Flashcards in 3.1 Marketing, competition and the customer Deck (13)
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1
Q

What are the roles of marketing?

A

identifying customer needs
satisfying customer needs
maintaining customer loyalty, building customer relationships

2
Q

Why do customer/consumer spending patterns change?

A
price of competitor's product
price of products
changes in consumer income
changes in population size and structure
changes in trends
spending on advertising and other promotional activities
3
Q

What is ‘customer loyalty’?

A

when customer keeps buying the same brand no matter what the price

4
Q

Why do some markets become more competitive?

A

legal controls prevent individual firm from dominating market
deregulation - removal of government controls from industry
e-commerce and social networks

5
Q

How do businesses respond to changing spending patterns and increase competition?

A

Develop their products
Improve efficiency
Increase promotion
Look for new markets

6
Q

What is ‘niche marketing’?

A

developing products for a small segment of the market

7
Q

benefits + limitations of niche marketing?

A

+ less competition
+ customers willing to pay large sum of money
- luxury goods go out of favour during time of recession/economic crisis
- large companies see success, copy/sell for cheaper

8
Q

What is ‘mass marketing’?

A

selling the same product to the whole market

9
Q

benefits + limitations of mass marketing?

A

+ potential for high sales and profits
+ products don’t go out of favour during time of recession
- increased competition
- people sensitive about prices, not willing to pay large sum

10
Q

What is ‘market segmentation’?

A

dividing whole market into segments by consumer characteristics + targeting different products to each segment

11
Q

What are the two types of segmentation?

A

geographic segmentation: dividing consumers in the market by geographic area
demographic segmentation: dividing consumers in the market by factors

12
Q

Benefits of market segmentation?

A
Goods + services designed to meet specific needs of consumers → increases sales
Small firms (not be able to compete in whole market) able to operate in one or two segments - e.g. a niche market
Marketing strategies can be better targeted at each segment
May be possible to charge higher prices
13
Q

What are ‘market-orientated businesses’?

A

Products are developed based on consumer demand as identified by market research