Business 1.2.1 - 2.4

• What are customer needs?

  Price - Customers only want to pay a certain amount for a product

  Quality - Certain standards or features in a product

  Choice - Choice of certain aspects

  Convenience - Ease of accessibility
• What is the importance of identifying customer needs?

  More likely that customers will buy a product via identifying & meeting customer needs
• What is the importance of satisfying customer needs?

  Increases sales, improves current products and customer satisfication.
• What is the Market-Driven Approach?

  Focusing on customers' needs rather than building a product then searching for customers.
• What does the Market - Driven Approach allow firms?

  • To find the correct marketing mix
  • Avoid costly mistakes
  • Be competitive
• What is market research?

  Process of collecting & processing information about the market.
• What does market research gather information on?

  • Demand
  • Competition
  • Target market
• What is the purpose of market research?

  • Identify & understand customer needs
  • Identify gaps in market
  • Reduce risk
  • Inform business decisions
• What is qualitative research?

  Information about opinions & views
• What is quantitative research?

  Factual information on things that can be quantified & recorded easily
• Methods of primary research?

  Surveys, questionnaires, focus groups & observation

  • Can mitigate risks & make more informed business decisions
  • Can be expensive & time consuming
• Methods of secondary research?

  Internet, market reports & government reports

  • Provides specific information
  • Might be out of date
• What is market segmentation?

  Process of dividing customers into different groups like age, gender, income or location
• What is market mapping?

  Process used to identify gaps in the market by looking at what competitors offer. Usually based off price & quality.
• What is competition?

  Selling similar products in the same market.

  Businesses usually compete on location, product range, price & customer service
• What is the impact of high competition?

  Negative effect on a business' profit.

  Forces a business to be efficient & constantly improve their product.
• What do businesses usually compete on?

  Price - businesses aim to produce their product at the lowest cost possible. This forces them to be efficient.

  Quality - Better quality products can come about due to competition.