1 1 meeting customer needs

A market is any place where buyers and sellers meet to exchange goods or services.

Market share is the proportion of the total market sales a business or brand controls.

The aim of marketing is to help identify, anticipate and satisfy consumer needs and wants profitably.

False. Needs such as shelter or food are considered to be essential, while wants are desires that are non-essential.

A mass market is where products are aimed at broad market segments.

A brand is a name, image or logo that helps one product stand out from its competitors.

Formula .

A niche market is one in which the products are aimed at a small subset of consumers in the market.

Branding is one of the key ways businesses achieve product or business differentiation.

True. A dynamic market is one that is subject to rapid or continuous changes.

Primary research is the process of gathering first-hand information directly from consumers in the target market.

Market segmentation is the process by which a single market is divided into sub-markets containing consumers with similar characteristics.

Product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.

Secondary research involves the collection, compilation, and analysis of data that already exists.

False. Primary research is usually more expensive and time-consuming than gathering secondary research.

Researchers may guide respondents to answer questions in a particular way.

Market segmentation allows firms to precisely target different groups of consumers.

False. Secondary market research may include purchasing market reports from specialist companies or accessing government statistics.

Market orientation is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet those needs.

Free samples are provided to consumers in the target market for a limited period to gauge their response to the product.

False. Not everyone within a segment will behave in the same way; they simply share similar characteristics.

Market positioning refers to product launch decisions such as price, quality, branding and customer perception, which position the product in relation to its competitors.

A market map is a two-dimensional diagram that shows the attributes or characteristics of a product compared to those of rivals.

False. Only two criteria can be chosen for a market map, e.g. price and quality.

Market saturation exists where most customers who want to buy a product have already done so.

Competitive advantage refers to the features of a business and its products that are perceived as superior to those of its rivals by customers.

Product differentiation is an attempt by a business to distinguish its products from those of its competitors.

Sources of competitive advantage can include:

Added value is the difference between the selling price and the cost of the inputs required to create the product or service.

True. Adding value raises costs, but it is worth it if the increase in selling price outweighs the higher costs associated with the method.