1.1.1 The Market Study Set Questions
Fully Solved.
Market - Answer Any arrangement that allows buyers and sellers to communicate and exchange a
particular range of products and services.
What does marketing involve? - Answer It helps:
- businesses sell its product/service.
- Identify needs and wants of consumers.
- Design product to suit them.
- Understand threats of rivals.
- Telling customers about products.
- Charge a right price
- Persuade consumers to buy product/service.
- Make products in convenient locations.
Mass Market - Answer It is a large market where they aim their products at all consumers and so sells
the same product and produces large quantity of them charging low costs which exploits economic of
scales.
Niche Market - Answer A smaller part of a larger market in which customers have more specific needs
and wants. They sell different products to different groups of consumers.
The difference between mass and niche market - Answer MASS:
- Large market
- Higher sales and profit
- Cannot focus on the consumer's needs and want.
- There are alot of competition
, NICHE:
- Small market
- Charge a premium price
- Can focus on the computer's needs and want
- No competition
Marketing - Answer the action or business of promoting and selling products or services including
market research and advertising.
Marketing Objectives - Answer Goals business want to achieve during the year through the marketing
plan.
Brand Loyalty - Answer Consistent preference for one brand over all others. Consumers will pay more
for that particular brand because they are loyal to it.
Corporate Image - Answer Image of the organization. A firm needs to protect it to run the business.
Market value - Answer It is the total amount spent by consumers
Market volume - Answer It is the physical quantity of products which are produced and sold
Market share - Answer the portion of a market controlled by a particular company or product. It
indicates other companies to follow the market leader and influences the leader to maintain its position.
The equation is:
Sales of business/total sale in the market x100
Brand name - Answer a unique identification for a company's products. This makes them differentiate
from other products and is important in mass market.