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1
Question
How are market growth and market share measured?
Answer
Market growth can be measured by volume or value. Market share can be calculated using volume or value depending on the perspective of the manufacturer.
2
Question
What is the impact of total market sales increasing at a faster rate than a firm's sales on market share?
Answer
A firm's market share can decrease even if its sales are rising, if the total market sales are growing at a faster rate than the firm's sales.
3
Question
In what ways do businesses compete aside from price competition?
Answer
Businesses compete through non-price competition, such as customer service, location, and product differentiation.
4
Question
How do differentiated products affect competition in the market?
Answer
Differentiated products increase competition by offering unique features or special ingredients that set them apart from competitors.
5
Question
What is differentiation in the market?
Answer
6
Question
Answer
Differentiation in the market refers to the process of making a product or service unique from other similar offerings in order to stand out and attract consumers.
7
Question
What is added value in marketing?
Answer
8
Question
Answer
Added value in marketing refers to the additional worth that a company gives to a product or service before offering it to customers, often exceeding the cost of the basic materials needed to produce the good or service.
9
Question
How can businesses add value through marketing strategies?
Answer
10
Question
Answer
Businesses can add value through marketing strategies by creating an exclusive and luxurious retail environment, using high-quality packaging, promoting and branding the product, and offering special ingredients or features that set the product apart from competitors.
11
Question
What is marketing?
Answer
12
Question
Answer
Marketing is the process of promoting and selling products or services, including market research, advertising, and branding.
13
Question
What is a Unique Selling Point (USP)?
Answer
14
Question
Answer
A Unique Selling Point (USP) is the special feature of a product that differentiates it from competitors' products.
15
Question
What is product differentiation?
Answer
16
Question
Answer
Product differentiation is making a product distinctive so that it stands out from competitors' products in consumers' perception.
17
Question
What are examples of niche marketing?
Answer
Examples of niche marketing include Versace designs, Clinique perfumes, extreme sports clothing, and stretcher retail shops that cater to a specific, often small, segment of the market.
18
Question
What is niche marketing?
Answer
19
Question
Answer
Niche marketing involves identifying and exploiting a small segment of a larger market by developing products to suit it.
20
Question
What is mass marketing?
Answer
Mass marketing involves selling the same products to the whole market with no attempt to target groups within it.
21
Question
What are the key terms associated with niche and mass marketing?
Answer
The key terms associated with niche and mass marketing are niche marketing and mass marketing.
22
Question
What is the concept of mass marketing in modern business practices?
Answer
The concept of mass marketing, selling one product for the whole market, is becoming quite unusual as firms recognize the need to target different segments within the market.
23
Question
How has Hoover adapted to changing consumer preferences and increased competition in the market?
Answer
Hoover has expanded its product range to offer a wider variety of models in different sizes, power output, and prices to appeal to different segments of the mass market.
24
Question
What are the advantages of niche marketing?
Answer
Advantages of niche marketing include the opportunity for small firms to thrive, the ability to sell at higher prices and profit margins, and the chance to create exclusive products that consumers are willing to pay more for.
25
Question
What are the advantages of mass marketing?
Answer
Advantages of mass marketing include achieving economies of scale, lower average costs of production, and running fewer risks compared to niche strategies.
26
Question
How should management decide between niche and mass marketing strategies?
Answer
Management should decide based on the objectives of the business and the nature of the product, with niche marketing being more customer-focused and mass marketing aiming for broader market coverage.
27
Question
What is niche marketing all about?
Answer
Niche marketing is about targeting a specific segment of the market with specialized products or services.
28
Question
What are the disadvantages of small market niches?
Answer
Small market niches do not allow economies of scale to be achieved, and any change in consumer buying habits could lead to a rapid decline in sales.
29
Question
Why might mass-market businesses enjoy substantially lower average costs of production?
Answer
Mass-market businesses may enjoy lower average costs of production due to economies of scale.
30
Question
What are the advantages of niche marketing?
Answer
Advantages of niche marketing include targeting specific consumer needs, less competition, and the ability to charge premium prices.