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| Question | Answer |
| What is marketing? | Identifying, satisfying and revisiting customer needs. (Such as researching the product before deciding on marketing mix) |
| How can a business anticipate customer needs? | -Being polite - Working out customer needs - Making sure customers enjoy the experience - Making a good first impression |
| Why do businesses need to understand customer needs? | - So they know what customers want - Know why customers would rather buy off a rival E.g. Amazon tracks what you buy and suggests similar items of products when you log on. |
| How can a business satisfy customer needs? | - Make sure product is reliable/efficient - Product meets customer needs *This helps business be profitable |
| What is 'market research'? | The collection and analysis of data and information to inform a business about its market. Can be qualitative or quantitative. |
| What is qualitative data? | Gathering of non-statistical information that gives a company in-depth insight into the reasons for human behaviour (focus groups, observations, interviews) |
| What is quantitative research? | Gathering of statistical data to inform the company about people's behaviour but doesn't identify reasons. (Surveys, observations, questionnaires) |
| What is primary research? | Involves the collection of first hand data that didn't exist before. Original data. |
| What is secondary research? | Research that's been undertaken by another organisation already. |
| What is product trial? | Involves getting people to buy a product/service for the first time. |
| What is repeat purchase? | Customers come back after their first purchase to buy the product again and again. |
| What is price matching? | Brand X costs the same as brand Y - people won't switch brands to save money. |
| What is product development? | Keeping customers informed of updates to a product - they'd want to upgrade to an improved version (softwares) |
| What is market-driven? | Firms use market research to find out what people want, then make it - product is useful (MP3 player w/built-in radio) |
| What is product-driven? | Firms design/invent a new product and try to sell it. - Product that nobody really wants is made (MP3 w/built-in toaster) Market-driven firms do better. |
| Advantages of having a good brand image to customers? | - Easily recognized/liked by customers - Built up over many years for positive brand image - Increases sales - product trials/repeat purchases. It's chosen over rivals - HQ products - customers won't be loyal if product isn't good quality and bad brand image. |
| What is product differentiation? | Making products distinctive in the market. These differences can make customers buy a certain product rather than rivals. |
| How can product differentiation be achieved? | - Reliability - Good brand image - High quality products - Product fit for purpose - Unique features - Good design, low price - Attractive packaging |
| What would happen if a business didn't do product differentiation? | * Customers think that the product is identical to rivals so there's no reason to buy theirs over others * Only reason that might attract customers = cheaper product but that means less profit. |
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