Marketing, competition and the customer

• What is a market?

  A market consists of all buyers and sellers of a particular good.
• What is the definition of marketing?

  Marketing is the management process responsible for identifying, anticipating and satisfying consumers’ requirements profitably.
• What are the roles of marketing in a business?

  • Identifying customer needs through market research
  • Satisfying customer needs by producing and selling goods and services
  • Maintaining customer loyalty through various methods
  • Gaining information on customers to improve products
  • Anticipating changes in customer needs
• How can a business maintain customer loyalty?

  By building customer relationships through methods like loyalty card schemes and discounts.
• Why is it important for a firm to gain information on customers?

  It helps the firm develop and sell better products in the future.
• What might cause changes in customer spending patterns?

  Changes in tastes and preferences, technology, income, and an ageing population.
• Why do firms need to know what their consumers want?

  To stay ahead of competitors and remain profitable.
• What is one reason markets have become more competitive?

  Globalization has led to products being sold in markets all over the world.
• How can businesses respond to changing spending patterns?

  By maintaining good customer relationships and improving existing products.
• What are the strategies a business can use to maintain market share?

  • Maintain good customer relationships
  • Improve existing products
  • Introduce new products
  • Keep costs low to maintain profitability
• What is niche marketing?

  Niche marketing is identifying and exploiting a small segment of a larger market.
• What is one advantage of niche marketing?

  Small firms can thrive in niche markets where large firms have not yet established.
• What is a limitation of niche marketing?

  Lack of economies of scale can occur in niche markets.
• What is mass marketing?

  Mass marketing is selling the same product to the whole market without targeting specific groups.
• What is one advantage of mass marketing?

  It can benefit from economies of scale due to large volume production.
• What is market segmentation?

  Market segmentation is the process of dividing a market into groups based on different characteristics.
• What are some bases for market segmentation?

  Socio-economic groups, age, location, gender, lifestyle, and use of the product.
• What are the advantages of market segmentation?

  • Makes marketing cost-effective by targeting specific segments
  • Leads to higher sales and profitability
  • Increases opportunities to increase sales
• What is a potential disadvantage of market segmentation?

  It can be very expensive to produce and advertise different products for different customer markets.
• What is a risk associated with market segmentation?

  The market may not be as segmented as assumed, leading to ineffective targeting.
• Market is the place where buyers and sellers meet to exchange goods or services.
• The market can be defined as an institution that brings together buyers and sellers, allowing them to interact with one another.
• A market is any arrangement by which people who want to buy something are brought into contact with those who have it available at a price they are willing to pay.
• There are two types of markets: primary and secondary.
• A market consists of all those who buy, sell, or participate in the marketing of a particular commodity.