GRADE 11

BUSINESS STUDIES
UNIT -1: MARKETING AND PEOPLE
CHAPTER 1. MEETING CUSTOMER NEEDS

I.THE MARKET

1.What is a market?

where buyers and sellers meet to exchange goods, now-a-days it is more specific e.g.

-financial markets

-housing markets

-commodity ( raw materials e.g. coal, coffee) markets

2 What is Marketing?

a management process involves in identifying, anticipating and satisfying consumer requirements

profitably.

3 What does Marketing involve?

-range of activities that help a business sell its products

-identifying the needs and wants of the customers

-designing products that meet these needs

-understanding the threats form competitors

-telling customers about products

- charging the right price

- persuading customers to buy the product

-making products available at a convenient location

4 What is a Mass Market?

a very large market in which products with mass appeal are targeted

5 What is a Niche Market?

a smaller market, usually within a large market or industry

6 What are some benefits of being in a mass market?

-opportunities for large sales

-possibility of economies of scales

7 What are some drawbacks of being in a mass market?

-Highly competitive

-Requires large investment in marketing --> in 2013 Coke spend $3.3bn on global marketing

8 What are some benefits of being in a Niche market?

- Opportunity to charge higher prices

-First in the market advantages

9 What are some drawbacks of being in a Niche Market?

-Risky for a business in a small market

-Vulnerable to large businesses entering the market ( who can also afford to charge lower prices)

10 What is Market Size?

is measured by either values of products sold or volume of products sold and is used to calculate market
shares

11 What is Market Share?

the proportion of total sales in a particular market for which one or more business or brands are
responsible. Expressed as a percentage and can be calculated by value or volume.

12 What is the Market Share Formula?

Sales of a business/Total sales in the market x 100

13 What can the Market Share Formula be used in comparison with?

- compared to last years figures

- compared to market shares in other countries

- compared to competitors

14 What can businesses do with market share information?

-Set new objectives

-replicate what the market leaders are doing

15 What is a Brand Name?

the name given to a product e.g. Coca-Cola

16 What may branding be used for?

-differentiate the product from there rivals

- create customer loyalty

-help product recognition

- develop an image

-charge a premium price when brand becomes strong

17 What is a Dynamic Market?

markets that change

- Music industry --> tapes, CD's, MP3

-Movie Industry --> VHS, DVD's, Blu-ray, streaming

-Drinks industry --> moving away from sugary drinks

if businesses don’t adapt they fail e.g. Blockbuster, Woolworths

18 What is E-commerce?

conducting business transactions online

19 What is Online retailing or e-tailing?

the retailing of goods online

20 what are some benefits of E-tailing?

-More access from people --> 24/7, and travel distance, some people dont like shopping or cant
physically get to shops

- Lower costs --> not as many staff wages (no staff wages)

-Easier to get person information and then use it to target products and offers

-It can be updated easily, ie 'deal of the day' imaging

21 When do new markets occur?

-with a brand new product e.g. flat screen TVs, mobile phones

- In 'emerging markets' --> BRICS/ MINT Market

22 What does BRICS stand for?

-Brazil

-Russia

-India

-China
-South Africa

23 What does MINT stand for?

- Mexico

- Indonesia

-Nigeria

- Turkey

24 Why does Growth occur in new markets?

- Economic Growth --> more disposable income leads to growth

- Innovation --> new products the tablets or 3D printers, but also variations/ improvements i.e. Click and
Collect

-Social changes --> fewer marriages, more single parent families

- Changes in legislation --> e.g. ban on tobacco advertising and smoking in public places

-Demographic changes -- its growing also other people

25 How do businesses adapt to change?

-Flexibility --> having a flexible culture , with multi-skilled staff, flexible machinery and operations

-Market research --> this should be ongoing with current and potential customers

- Investment --> in new product development and also in training and new, flexible machinery

-Continuous Improvement --> in all aspects, more efficiency - saves money better customer service -
means repeat purchases

- Develop a niche --> if that market does change and you cant specialise in what you do do e.g. Harley
Davison

26 How do businesses attract customers?

- lowering prices

-Making products appear different

-better quality

-better promotion

- Extra's e.g. customer service

Those all come at a costs and reduces profits!

27 How do businesses deal with competition?

- some businesses may decide to take over their competition

- they may try ways to beat competitors e.g. big advertising campaigns, Laws are in place to stop unfair
competition

28 What is branding?

The process involved in creating a unique name and image for a product in the consumers' mind, mainly
through advertising campaigns with a consistent theme. Branding aims to establish a significant and
differentiated presence in the market that attracts and retains loyal customers.