Unit 2 - Developing a marketing campaign Questions and Answers 100% original.

Purposes of marketing - Anticipate demand - Correct Answers Marketing aims to work out what customers might want in the future. Market research is used to ask customers questions about products and services. This helps to predict customers' needs and wants. Recognise demand - Correct Answers Market research can help identify customer needs and wants that are not being met at the moment, and the sort of product or service that might fulfil these needs and wants. Stimulate Demand - Correct Answers Businesses often use advertising and social media to persuade customers that they really want or need a product or service. Satisfy demand - Correct Answers Businesses carry out market research - to find out what customers think of their products/services so that they can adapt/improve them. Marketing helps to make sure customers know where their products can be purchased. Marketing aims and objectives: Understanding customer needs and wants - Correct Answers Understanding customer behaviour enables a business to operate and develop to serve its customers. Develop new products - Correct Answers The business may find a new product or service is required after customer needs and demands are identified. Being the first to offer a product or service can result in huge sales and profits. improve profitability - Correct Answers More sales = More profit. Greater profits can be made by setting the selling price much higher than the cost of making the product. Marketing helps convince customers that a highly priced products means better quality. increase market share - Correct Answers All businesses have competitors and must fight for their share of sales. Diversification - Correct Answers A business doesn't want to rely on sales of one product in one market. Demand could fail: offering different products in different markets is a good way to ensure the business survives and continues to grow. Increased brand awareness and loyalty - Correct Answers Marketing aims to ensure that customers instantly recognize the brand and choose to buy it rather than a competitor's brand. Mass market - Correct Answers A mass market is a large group of customers with a wide range of different characteristics. Many products and services are aimed at mass markets. EG: Bread and milk are targeted at large groups of consumers. Niche market - Correct Answers Smaller segments of the market. Consumers want something different from the mainstream and are not attracted to mass market products. They expect to pay a higher price. Niche markets attract specialist businesses that have an expertise in providing particular products.