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business 1.2 - Coggle Diagram

- - - - being market-driven rather than product-driven means being driven by customers needs and then fulfilling them this can:
        
        increase sales
        
        improve current products and customer satisfaction
    - - if a firm is identifying and meeting customers needs then it is more likely that they will buy a product or service
  - - - developing a new product or making adjustments to existing ones can need a lot of investment
      - being market-driven and developing products that customers need or want can avoid costly errors
    - - if a business satisifies a customers needs better than competitios do, then it is likely that a consumer will buy their product
      - so identifying and satisfying customers needs is even more important when competing with businesses selling similar products
      - adapting to new customer needs is important for staying competitive as the business environment changes
    - - so identifying and satisfying customers needs is even more important when competing with businesses selling similar products
      - adapting to new customer needs is important for staying competitive as the business environment changes
      - if a business satisfies a customers needs better than competitors do, then it is likely that a consumer will buy their product
- - - - an industry for a specific good or service. businesses often anakyse the market for bottle water or the market for games consoles
    - - a place where buyers and sellers meet to trade products. this can be websites like ebay or a stock market
    - - we often talk aboit the market for 16 year olds or the market for retired people
      - this is often used when talking about a companys target market which is the group of people that a company aims their product or service at
  - - - product range is the different goods or services that one firm offers to customers
  - - - businesses may try to prodcue their product at the lowest cost possible
      - ryanair is an airline that trends to compete with competitors on price. it has a very short period of time between its fights so that it uses its planes as efficiently as possible
      - competition often forces businesses to be efficient
    - - competition can lead to better quality products or services it firms compete by creating the highest quality or best product (or service)
      - companies like apple complete by making the highest quality product that they can
- - - - market mapping is a process to identify a gap in the market by looking at what competitors offer
    - - advertising in a newspaper probably is not the best way to target teenage girls, but a teenage magazine like bliss might be
      - segmenting a market can give businesses ideas about how best to promote their products
    - - when choosing the product, price (geographic), promotional and price segmentation can help a business to understand its customers needs and wants
      - for example next provides clothing aimed at infants and toddlers using its next kids range
  - - - customers wants and needs often change based upon where they live or where they are born
      - there are many supermarkets focusing on polish food on some high streets in the UK
      - it makes more sense for these supermarkets to locate where there are lots of polish families living
    - - a products can be aimed at a specific age range
      - a business is unlikely to advertise mobility scooter to people under 40
    - - some products are aimed at primarily at either males or females
      - boohoo.com is an online fashion retailer that primarily targets females advertising to lots of males may not be the most effective strategy
    - - certain products need to be aimed at people who earn a certain amount of money
      - for example high end kitchens (priced at 20,000) are more likely to be effective advertising in magazines like ideal home or the sunday times because these magazines tend to have readership with higher incomes
- - - - market research into customers demands is important for business success
      - insights into customers wants and needs can help a business to improve the product, spot market opportunities and stay competitive
      - insights into overall demand trends can help the firm spot opportunities for growth and potential threats from new products/ technology
    - - market research into competitors can help a business understand the major threats in the market and then prepare the business to deal with these threats
      - market research for established fashion labels like H & M would identify threats that come from online platforms like ASOS or Boohoo
    - - market research into a business's target market will give the company insights into their customers wants and needs and how they are changing over time
  - - - qualitative research generally collects information about opinions and views rather than things that can be counted
      - for example reseatch into whether customers think the customer service at waitrose is good is qualitative research
    - - quantitative research collects factual information on things that can be quantified and recorded easily
      - for example research into the number of cans of coca cola sold in the UK last year is quantitative research
- - - - for example a firm may use questionnaires surveys or interviews to carry out primary research
      - firms often do this without the customer thinking about it
      - a key benefit of primary research is that it is tailored exactly to the needs of the business
    - - at airports firm like ferrovial which owns heathrow often asks what your service was like at security clearence ques
      - this is known as the likert scale which is a form of market research that firms use to try to understand and gauge what customers think of their product or service
  - - - for example market research done by governments contained in reports like the family expenditure survey, newspaper articles and research reports written by independent organisations