p.1
Market Types: Mass vs. Niche
What is niche marketing?
Identifying and exploiting a small segment of a larger market with specific needs and wants.
p.4
Dynamic Markets and Innovation
What is a primary reason for market growth?
Economic growth and increasing global population leading to higher demand for goods.
p.1
Market Types: Mass vs. Niche
What is a key characteristic of mass markets?
No targeting of specific groups within the market.
p.12
Market Research: Primary and Secondary
What are file searching facilities used for?
To locate specific information within a database.
p.18
Market Segmentation Strategies
How does ethnicity influence consumer spending?
People from different origins may spend their money on different things.
p.9
Market Research: Primary and Secondary
What is a focus group?
A group discussion where customers provide feedback about a product, facilitated by market researchers.
p.18
Market Segmentation Strategies
Give an example of psychographic segmentation.
Clothes are often bought depending on customer attitudes, such as preferences for grunge outfits.
p.3
Market Segmentation Strategies
What is market size?
The total potential sales or revenue available in a specific market.
p.3
Market Segmentation Strategies
What role do brands play in market size?
Brands can help define and capture segments of the market, influencing overall market size.
p.6
Risk vs. Uncertainty in Business
What is an example of risk in business?
Committing resources that can be lost while exploring new ventures.
p.12
Market Research: Primary and Secondary
What is the purpose of file sorting facilities?
To organize data in a specific order, such as ascending.
p.10
Market Research: Primary and Secondary
What is a benefit of using comparison websites in secondary research?
To observe the cheapest suppliers in the market.
p.10
Market Research: Primary and Secondary
How can social media be used for market research?
To gain insights into a firm's customers and analyze trends.
p.20
Competitive Advantage and Product Differentiation
How does attractive packaging contribute to product differentiation?
It helps in recognition and can make the product stand out from competitors.
p.9
Market Research: Primary and Secondary
Why are focus groups used by businesses?
To receive detailed feedback for continual improvement of their products.
p.11
Market Research: Primary and Secondary
What are trade journals?
Publications produced by businesses that provide statistics for other businesses.
p.3
Competitive Advantage and Product Differentiation
How can brands influence market share?
Through effective marketing strategies, product differentiation, and customer loyalty.
p.21
Competitive Advantage and Product Differentiation
How can adding value protect a business?
It helps maintain competitiveness even if competitors lower their prices.
p.18
Market Segmentation Strategies
What is socio-economic group segmentation?
A type of demographic segmentation that segregates the market based on occupation.
p.8
Market Research: Primary and Secondary
How can businesses respond to high demand patterns?
By determining production needs and hiring more workers or machinery.
p.8
Market Research: Primary and Secondary
What is the purpose of understanding consumer behavior patterns?
To enhance business success by identifying and understanding these patterns.
p.13
Sampling Methods in Market Research
How are target populations segmented in quota sampling?
Into groups that share specific characteristics, such as age and gender.
p.19
Market Segmentation Strategies
What is one benefit of market segmentation?
Higher profits by charging high prices for different market segments.
p.10
Market Research: Primary and Secondary
What is an advantage of using social media for market research?
It provides a cost-effective and in-depth tool for gaining insights.
p.17
Market Segmentation Strategies
What is one disadvantage of market segmentation?
Promotional costs may be high as different advertisements might be needed for different segments.
p.9
Market Research: Primary and Secondary
What is a disadvantage of conducting face-to-face interviews on the street?
Many people do not like being approached on the street.
p.9
Market Research: Primary and Secondary
What is a benefit of telephone interviews?
They are cheaper and can cover a wider geographical area.
p.9
Market Research: Primary and Secondary
What is the purpose of test marketing?
To sell a product in a small geographical area to test it before a wider launch.
p.6
Competition and Its Effects
What happens to consumers without competition?
They may face higher prices and reduced innovation.
p.20
Competitive Advantage and Product Differentiation
What is the purpose of product differentiation?
To differentiate products from competitors, especially in competitive markets.
p.12
Market Research: Primary and Secondary
Why do businesses buy banks of information in databases?
To gain access to valuable information like customer details and suppliers.
p.12
Sampling Methods in Market Research
What is a sample in market research?
A small group of people that represents a proportion of the total market.
p.17
Market Segmentation Strategies
Why do businesses need to segment their markets?
Because customers differ in the benefits they want, amount they are willing to pay, media, quantities they buy, and time and space they buy.
p.8
Market Research: Primary and Secondary
What is primary market research?
The gathering of 'new' information that does not already exist.
p.19
Market Segmentation Strategies
How can businesses reduce costs through market segmentation?
By avoiding promotion for segments that are not interested in their products.
p.5
Dynamic Markets and Innovation
What is one method businesses can use to adapt to change?
Flexibility in workplace and products.
p.20
Meeting Customer Needs
What is the benefit of frequent buyer offers?
They provide better pricing and free products for loyal customers, adding value.
p.7
Market Research: Primary and Secondary
How can market research help businesses understand customer needs?
By identifying and anticipating customer needs and wants.
p.14
Market Positioning and Mapping
How does market orientation provide a competitive advantage?
By anticipating market changes before they occur.
p.19
Competitive Advantage and Product Differentiation
How can focusing on a niche market enhance competitiveness?
Catering to a specific audience can make a business more competitive.
p.13
Sampling Methods in Market Research
What is a limitation of quota sampling?
Since respondents are not randomly selected, it may not be statistically accurate to represent the entire population.
p.4
Dynamic Markets and Innovation
What is one factor that influences the speed of market growth?
The specific characteristics of each market.
p.21
Competitive Advantage and Product Differentiation
How does adding value help in market differentiation?
It enables businesses to stand out from competitors.
p.21
Market Segmentation Strategies
What market strategy can be enhanced by adding value?
Focusing on target markets.
p.10
Market Research: Primary and Secondary
How can businesses gather data from rivals?
By accessing their websites.
p.16
Market Positioning and Mapping
How can market mapping inform operational decisions?
By providing specific information about market movements and trends.
p.12
Sampling Methods in Market Research
What is the importance of having a representative sample?
To ensure that the behavior and views of the sample reflect those of the entire population.
p.15
Market Positioning and Mapping
What does market positioning refer to?
The place a brand occupies in the minds of customers and how it is distinguished from competitors.
p.14
Market Positioning and Mapping
In which industries is product orientation commonly used?
Technology and growing industries.
p.7
Market Research: Primary and Secondary
What are common methods for collecting quantitative research data?
Surveys and government publications.
p.19
Competitive Advantage and Product Differentiation
How can product design contribute to competitive advantage?
It helps differentiate products from competitors.
p.7
Market Research: Primary and Secondary
What does quantitative research focus on?
Data that can be quantified by a numerical figure.
p.11
Market Research: Primary and Secondary
What organizations produce beneficial reports for businesses?
EU, World Bank, WTO, etc., providing information like interest rates.
p.5
Competition and Its Effects
What is competition in a market?
The rivalry that exists between businesses.
p.21
Competitive Advantage and Product Differentiation
What is a benefit of adding value to products or services?
It allows businesses to charge higher prices.
p.10
Market Research: Primary and Secondary
What is secondary market research?
The collection of data that is already in existence.
p.6
Risk vs. Uncertainty in Business
What are some examples of uncertainty that businesses face?
New competitors, changing consumer tastes, government policies, new technology, natural disasters, and economic recessions.
p.15
Market Positioning and Mapping
What factors influence a business's decision between market and product orientation?
The nature of the product, policy decisions, views of those in control, nature and size of the market, and degree of competition.
p.17
Market Segmentation Strategies
What is a market segment?
A part of the whole market where a particular customer group has similar characteristics.
p.9
Market Research: Primary and Secondary
What are consumer panels?
Groups of customers asked for feedback about products over a period of time.
p.14
Market Positioning and Mapping
What is product orientation?
A focus on the production process and product design rather than meeting customer needs.
p.12
Sampling Methods in Market Research
What is random sampling?
A method where respondents are selected randomly for interviews.
p.12
Sampling Methods in Market Research
What is the minimum sample size usually required for meaningful results?
At least 10% of the population.
p.5
Dynamic Markets and Innovation
What is continuous improvement in a competitive environment?
Identifying areas for improvement and making changes.
p.11
Market Research: Primary and Secondary
What is a database?
An organized collection of data stored electronically with instant access and sorting facilities.
p.19
Competitive Advantage and Product Differentiation
Why is an ethical stance important for attracting customers?
Using eco-friendly materials can attract more customers.
p.13
Sampling Methods in Market Research
What is a key advantage of quota sampling?
It is more cost-effective and useful where the proportions of different groups are known.
p.6
Competition and Its Effects
What are the benefits of competition for consumers?
More choice, better quality, and low prices.
p.6
Risk vs. Uncertainty in Business
What is the difference between risk and uncertainty in business?
Risk involves unknown outcomes from actions taken, while uncertainty involves unpredictability of external factors affecting the business.
p.16
Market Positioning and Mapping
What is one advantage of market mapping?
It accurately distinguishes the size and layout of the market or industry.
p.13
Sampling Methods in Market Research
Why is a large sample necessary in market research?
A small sample may not be representative of the whole population.
p.13
Sampling Methods in Market Research
What is quota sampling?
Respondents are selected in a non-random manner in the same proportion as they exist in the whole population.
p.11
Market Research: Primary and Secondary
How can newspapers and magazines be used in market research?
Businesses can analyze ads to observe the number of competitors in the market.
p.18
Market Segmentation Strategies
What is a disadvantage of psychographic segmentation?
It's hard for businesses to measure consumer beliefs, attitudes, and lifestyles.
p.5
Dynamic Markets and Innovation
What happens when businesses do not adapt to market changes?
They are likely to lose market share.
p.15
Market Positioning and Mapping
What are the 4P's used for in market positioning?
To achieve differentiation and consumer perception about a product.
p.8
Market Research: Primary and Secondary
What is a common method for collecting primary information?
Asking consumers questions or observing their behavior.
p.5
Dynamic Markets and Innovation
How can businesses demonstrate flexibility?
Through flexible working practices, pricing, and shifts.
p.15
Market Positioning and Mapping
Why might a business need to reposition their products?
As markets change, to adapt to new consumer perceptions.
p.17
Market Segmentation Strategies
How can small firms compete in large markets?
By selling specialized items.
p.7
Market Research: Primary and Secondary
What is the purpose of quantifying likely demand in market research?
To determine how much of a product a business might expect to sell.
p.5
Competition and Its Effects
How do businesses encourage customers to choose their products?
By lowering prices, differentiating products, and offering better quality.
p.19
Competitive Advantage and Product Differentiation
How does flexibility contribute to competitive advantage?
It allows a business to adapt to current customer needs and wants.
p.1
Market Types: Mass vs. Niche
What is mass marketing?
Selling the same product to the whole market with no attempt to target specific groups.
p.16
Market Positioning and Mapping
What is market mapping?
A process using a graph to plot competitors and their products to understand competitor behavior and spot market gaps.
p.10
Market Research: Primary and Secondary
What types of data can be used in secondary research?
Internal data from within the business and external data from outside sources.
p.19
Market Segmentation Strategies
What is usage rate in behavioral segmentation?
Segmentation based on the frequency of usage of a product.
p.19
Market Segmentation Strategies
How is loyalty used in behavioral segmentation?
Market is segmented based on how loyal customers are.
p.19
Market Segmentation Strategies
What is a drawback of behavioral segmentation?
Consumers’ usage and loyalty can be hard to measure.
p.7
Market Research: Primary and Secondary
Why do businesses invest in market research?
To reduce the risk of failure.
p.12
Sampling Methods in Market Research
What is the trade-off when using large sample sizes?
Increased accuracy versus higher costs.
p.14
Market Positioning and Mapping
What is market orientation?
A focus on making products meet the needs and wants of customers.
p.12
Sampling Methods in Market Research
What assumption does random sampling make about the group members?
That all members of the group are exactly the same.
p.8
Sampling Methods in Market Research
What are the key elements of a good questionnaire?
Balance of open and closed questions, clear language, no leading questions, and not too long.
p.8
Sampling Methods in Market Research
What is a potential drawback of postal surveys?
They are often not returned, leading to wastage of resources.
p.17
Market Segmentation Strategies
What is a potential risk of relying on limited market segments?
Dependency on one or two limited market segments can be risky.
p.9
Market Research: Primary and Secondary
How does feedback from product trials help businesses?
It helps reduce the risk of failure by allowing late adjustments.
p.3
Market Positioning and Mapping
What does market share represent?
The percentage of total sales in a market that is held by a particular brand or company.
p.4
Dynamic Markets and Innovation
What role does innovation play in market growth?
Innovation drives changes that can lead to market expansion.
p.16
Market Positioning and Mapping
What is a disadvantage of market mapping?
It can only analyze two product qualities on the same map.
p.18
Market Segmentation Strategies
What is psychographic segmentation?
Segregating the market based on customer attitudes, opinions, and lifestyles.
p.7
Market Research: Primary and Secondary
What is market research?
The collection, presentation, and analysis of information relating to the marketing and consumption of goods and services.
p.10
Market Research: Primary and Secondary
What can businesses search for on social media to understand demand patterns?
Latest posts and popular terms.
p.17
Market Segmentation Strategies
What is one advantage of market segmentation?
It can define the target market and earn high sales by targeting products.
p.8
Market Research: Primary and Secondary
Who can carry out primary market research?
The business themselves or a market research agency.
p.19
Competitive Advantage and Product Differentiation
What defines competitive advantage?
An advantage that allows a business to perform better than its rivals.
p.17
Market Segmentation Strategies
What is geographic segmentation?
Segregating customers depending on where they live.
p.11
Market Research: Primary and Secondary
What kind of statistical reports does the government publish?
Reports on economic patterns, including sector sizes, age groups, income levels, and spending patterns.
p.8
Sampling Methods in Market Research
What is an advantage of online surveys?
They are cheaper and can be easily accessed by customers worldwide.
p.19
Competitive Advantage and Product Differentiation
How do delivery times impact customer satisfaction?
Fast delivery leads to higher customer satisfaction.
p.13
Sampling Methods in Market Research
How does stratified sampling differ from traditional quota sampling?
In stratified sampling, random people are picked from the groups instead of strategically choosing them.
p.4
Dynamic Markets and Innovation
How does online retailing relate to dynamic markets?
It represents a significant change in how markets operate and grow.
p.1
Market Types: Mass vs. Niche
What does niche marketing focus on?
Specific needs and wants of a small segment of the market.
p.13
Sampling Methods in Market Research
What is a disadvantage of drawing up a whole list of customers for random sampling?
It would be expensive for the business.
p.6
Risk vs. Uncertainty in Business
How does uncertainty affect decision-making in businesses?
It makes decision-making difficult due to unpredictable external factors.
p.15
Market Positioning and Mapping
How does the nature and size of the market affect orientation?
High production costs may lead to a more market-oriented approach to promote products effectively.
p.11
Market Research: Primary and Secondary
What type of information can magazines provide for businesses?
Surveys that help gain insights on customer demand patterns.
p.16
Market Research: Primary and Secondary
What is a potential issue with consumer perceptions in market mapping?
There may be a difference between consumers' perception of brand benefits and the actual benefits.
p.20
Meeting Customer Needs
How does high-quality customer service add value?
By exceeding customer expectations and impressing them with care and support.
p.9
Market Research: Primary and Secondary
What is one advantage of face-to-face interviews?
Questions can be explained if a respondent is confused.
p.17
Market Segmentation Strategies
What is demographic segmentation?
Dividing markets according to age, gender, income, social class, ethnicity, or religion of the population.
p.20
Meeting Customer Needs
How does customization add value to products?
By allowing businesses to insert a customer's name or logo, distinguishing their products.
p.19
Competitive Advantage and Product Differentiation
What role does customer service play in competitive advantage?
Adequate service can enhance competitiveness, especially for products needing more care.
p.5
Competition and Its Effects
What is a potential downside of methods used to encourage purchases?
They can cost money and reduce a business's profit.
p.13
Sampling Methods in Market Research
What happens once the target is reached in quota sampling?
No more people are interviewed from each group.
p.16
Market Positioning and Mapping
What do market or perceptual maps typically display?
Two dimensions showing qualities or characteristics of a brand and rival brands.
p.15
Market Positioning and Mapping
What can lead to obsolescence and failure in a business?
A strong focus on product orientation.
p.20
Competitive Advantage and Product Differentiation
What are the two types of product differentiation?
Actual differentiation (physical difference) and imagined differentiation (brand).
p.20
Competitive Advantage and Product Differentiation
How can flexible pricing serve as a differentiation strategy?
By setting a relatively high price to convey value or elegance, making it unique from competitors.
p.15
Market Positioning and Mapping
What is market positioning?
The view consumers have about the quality, value for money, and image of a product in relation to competitors.
p.13
Sampling Methods in Market Research
What happens once the target is reached in quota sampling?
No more people are interviewed from each group.
p.18
Market Segmentation Strategies
What is behavioral segmentation?
Segregating the market based on how a customer relates to a product.
p.11
Market Research: Primary and Secondary
What type of information can be gathered from TV adverts?
Information about rival products and their marketing methods.
p.19
Competitive Advantage and Product Differentiation
Why is product quality important for competitive advantage?
Better quality may lead customers to pay higher prices.
p.14
Market Positioning and Mapping
What is an advantage of market orientation?
It can respond quickly to market changes.
p.7
Market Research: Primary and Secondary
What can low demand patterns indicate for a business?
That launching a new product with low demand would be ineffective.
p.11
Market Research: Primary and Secondary
What is a key feature of a good database?
It should be user definable, allowing different users to specify its function or meaning.
p.13
Sampling Methods in Market Research
What is stratified sampling?
A method of quota sampling where respondents are chosen at random from segregated groups.
p.16
Market Positioning and Mapping
What can market mapping create regarding competitors?
Competitor profiles including incentives, company size, and recruitment activities.
p.20
Meeting Customer Needs
What is bundling in the context of adding value?
Combining multiple services in a package for customers to gain benefits.
p.9
Market Research: Primary and Secondary
What is a key requirement for participants in a focus group?
The group should be representative of the whole population.
p.11
Market Research: Primary and Secondary
How can TV programs assist businesses?
Shopping channels can be used to observe competitors' products.
p.20
Meeting Customer Needs
What role does packaging play in adding value to products?
Attractive wrapping can lead customers to perceive higher quality linked to the packaging.
p.14
Market Positioning and Mapping
What is one key activity market-oriented businesses engage in?
Conducting market research to analyze customer needs.
p.14
Market Positioning and Mapping
List one requirement for market-oriented businesses.
Consult the consumer continuously.
p.9
Market Research: Primary and Secondary
What is a potential drawback of telephone interviews?
Many people may decline or not answer calls from market research agencies.
p.11
Market Research: Primary and Secondary
What is a file in the context of databases?
A collection of common data.
p.14
Market Positioning and Mapping
How does product orientation improve quality?
By focusing on the production process and technological investment.
p.15
Market Positioning and Mapping
What approaches can a business take to position their product?
Highlighting benefits, characteristics, origin, and classification name of the product.
p.5
Dynamic Markets and Innovation
Why should businesses invest in R&D?
To adapt to demand changes in the market.
p.19
Competitive Advantage and Product Differentiation
How does promotion affect competitive advantage?
Creative advertisements can attract customers.
p.9
Market Research: Primary and Secondary
What are product trials?
Encouraging consumers to test a product before its full market launch.
p.19
Competitive Advantage and Product Differentiation
What is the benefit of economies of scale?
Lower costs allow businesses to lower prices and be more competitive.
