Unit 2
Customer Needs
Ways to meet customer needs:
good quality products
low priced products
home deliveries
good value
additional facilities e.g. café and pharmacy
wide range of brands and products
easy access, location and parking
self service
Customer Needs:
- Quality
- Choice
- Convenience
- Price
- Reliability
- Efficiency
- Great Design
However, needs are changing as the nature of business is dynamic, so companies need to
keep up with the changing trends. Factors such as seasons, social media, more vegans and
vegetarians and obesity rates can have an effect. But not all consumers have the same
needs, lots of factors including: age, health, income, dietary requirements can all have an
effect.
Importance of Customer Needs
For a business to be successful it needs to meet the needs of potential customers.
This can be done by solving a customer problem with a product or service.
Or providing a product or service that meets a need the customer does not know they
have yet, e.g. Facebook.
If a business meets the needs before the competition then that business can be
successful.
Price
Price is the amount the customer is willing to pay for a product or service.
If the price is established that meets the needs of the customer, then it will sell.
Businesses will therefore research to see what price satisfies customer needs, in order to
gain sales.
, Different budgets mean different products e.g. iPad and iPad Air.
Quality
Quality is the features and characteristics the customer needs in the product or service.
Successful businesses provide the right level of quality to entice customers to purchase
their products, rather than competitors.
Striking a balance between quality and price is vital, e.g. Aldi over Tesco.
Choice
The more customers have the ability to pick between products, the more likely they are
to purchase one.
Customers can find exactly what they want.
Businesses providing variety will have higher costs e.g. stocking Asda’s Finest Pizza and
Asda Value will cost the supermarket more to make but will capture more customers by
offering a variety of choice between quality and value.
Convenience
Convenience is the ease with which a product or service can be obtained by the
customer e.g. click and collect or home delivery.
Factors such as queue length, store layout, main road, parking and range all affect
convenience.
Efficiency and Reliability
Products or services need to be of good standard consistently.
Careful planning and ensuring each detail is correct will ensure success, e.g. Swiss trains
are renowned for punctuality and service with 88% on time.
Unreliable products or services will see customers choosing alternatives e.g. buses
instead of trains.
Reliability and efficiency encourages customer loyalty.
Great Design
Products that are well designed add a premium that customers are willing to pay more
for e.g. Levi jeans over Tesco jeans.
The key to success, is to learn what customers want.
Then get the right staff and other resources to provide the expertise to supply them.
Identifying and Understanding Customers
Learning why customers like or want something is key to developing a winning product. This
starts with the businesses understanding who their customers are, based on age, income,
gender and attitudes. This makes it easier to meet their needs and allows a business to
remain competitive.
Customer Needs
Ways to meet customer needs:
good quality products
low priced products
home deliveries
good value
additional facilities e.g. café and pharmacy
wide range of brands and products
easy access, location and parking
self service
Customer Needs:
- Quality
- Choice
- Convenience
- Price
- Reliability
- Efficiency
- Great Design
However, needs are changing as the nature of business is dynamic, so companies need to
keep up with the changing trends. Factors such as seasons, social media, more vegans and
vegetarians and obesity rates can have an effect. But not all consumers have the same
needs, lots of factors including: age, health, income, dietary requirements can all have an
effect.
Importance of Customer Needs
For a business to be successful it needs to meet the needs of potential customers.
This can be done by solving a customer problem with a product or service.
Or providing a product or service that meets a need the customer does not know they
have yet, e.g. Facebook.
If a business meets the needs before the competition then that business can be
successful.
Price
Price is the amount the customer is willing to pay for a product or service.
If the price is established that meets the needs of the customer, then it will sell.
Businesses will therefore research to see what price satisfies customer needs, in order to
gain sales.
, Different budgets mean different products e.g. iPad and iPad Air.
Quality
Quality is the features and characteristics the customer needs in the product or service.
Successful businesses provide the right level of quality to entice customers to purchase
their products, rather than competitors.
Striking a balance between quality and price is vital, e.g. Aldi over Tesco.
Choice
The more customers have the ability to pick between products, the more likely they are
to purchase one.
Customers can find exactly what they want.
Businesses providing variety will have higher costs e.g. stocking Asda’s Finest Pizza and
Asda Value will cost the supermarket more to make but will capture more customers by
offering a variety of choice between quality and value.
Convenience
Convenience is the ease with which a product or service can be obtained by the
customer e.g. click and collect or home delivery.
Factors such as queue length, store layout, main road, parking and range all affect
convenience.
Efficiency and Reliability
Products or services need to be of good standard consistently.
Careful planning and ensuring each detail is correct will ensure success, e.g. Swiss trains
are renowned for punctuality and service with 88% on time.
Unreliable products or services will see customers choosing alternatives e.g. buses
instead of trains.
Reliability and efficiency encourages customer loyalty.
Great Design
Products that are well designed add a premium that customers are willing to pay more
for e.g. Levi jeans over Tesco jeans.
The key to success, is to learn what customers want.
Then get the right staff and other resources to provide the expertise to supply them.
Identifying and Understanding Customers
Learning why customers like or want something is key to developing a winning product. This
starts with the businesses understanding who their customers are, based on age, income,
gender and attitudes. This makes it easier to meet their needs and allows a business to
remain competitive.
