Economics and Competition
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Economics and Competition

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Questions and Answers

What is one of the responsibilities of the marketing department?

  • To distribute products to the market
  • To manufacture products
  • To decide on the types of promotion that will be included in the campaigns (correct)
  • To provide after-sales services

    • The marketing department is responsible for transporting products to the market.

    False

    What is the importance of identifying customer needs in marketing?

    To find out what kind of products or services customers want, the prices they are willing to pay, where and how they want to buy these products, and what after-sales services they might want.

    Customer loyalty is when existing customers continually buy products from the same ____________________.

    <p>business</p> Signup and view all the answers

    Why do customer spending patterns change?

    <p>Both A and B</p> Signup and view all the answers

    Match the following marketing concepts with their descriptions:

    <p>Customer loyalty = When existing customers continually buy products from the same business Customer relationships = Communicating with customers to encourage them to become loyal to the business Market share = The percentage of the market that a business has captured Advertising media = The channels used to advertise products or services</p> Signup and view all the answers

    The marketing department is responsible for manufacturing products.

    <p>False</p> Signup and view all the answers

    What are some benefits of a successful marketing department?

    <p>Raise customer awareness of the business product or service, increase revenue and profitability, increase or maintain market share, enter new markets, and develop new products or improve existing products.</p> Signup and view all the answers

    Why do consumers tend to buy cheaper products when the economy has high unemployment?

    <p>Because they want to save money</p> Signup and view all the answers

    The internet and e-commerce have led to increased competition in markets.

    <p>True</p> Signup and view all the answers

    What are the three key ways businesses can respond to changing spending patterns and increased competition?

    <p>Maintain good customer relationships, keep improving existing products and develop new ones, and keep costs low to keep prices low.</p> Signup and view all the answers

    A _____________ market is where there is a very large number of sales of a product, and products are designed to appeal to the whole market.

    <p>Mass</p> Signup and view all the answers

    What is a disadvantage of selling to a mass market?

    <p>High levels of competition between businesses selling similar products</p> Signup and view all the answers

    Niche markets have limited sales potential.

    <p>True</p> Signup and view all the answers

    Match the market type with its characteristic:

    <p>Mass Market = Designed to appeal to the whole market Niche Market = Small, usually specialized segment of a larger market</p> Signup and view all the answers

    What is meant by a market?

    <p>The total number of customers and potential customers, as well as sellers, for a particular good or service.</p> Signup and view all the answers

    What is the primary responsibility of the sales team in a marketing department?

    <p>Selling products</p> Signup and view all the answers

    A marketing department is only necessary for small businesses.

    <p>False</p> Signup and view all the answers

    What is the primary goal of the marketing department?

    <p>Identifying customer wants and satisfying them profitably</p> Signup and view all the answers

    The marketing department is divided into sections such as sales, market research, promotion, and _______________

    <p>distribution</p> Signup and view all the answers

    What is the primary responsibility of the market research section?

    <p>Finding out customers needs and market changes</p> Signup and view all the answers

    What is the purpose of promotion in a marketing department?

    <p>To raise awareness and interest in a product, service or brand to increase sales and brand loyalty</p> Signup and view all the answers

    Match the following sections within a marketing department with their responsibilities:

    <p>Sales Team = Selling products Market Research Section = Finding out customers needs and market changes Promotion Section = Organizing and producing advertising Distribution Section = Delivering products to customers</p> Signup and view all the answers

    A marketing department is only responsible for selling products.

    <p>False</p> Signup and view all the answers

    Study Notes

    Changes in Consumer Spending Patterns

    • If the economy has high unemployment, consumers tend to buy cheaper products.
    • The internet and e-commerce have increased competition among businesses, as consumers can search for products and buy from overseas markets.

    Responding to Changing Spending Patterns

    • To remain successful, a business should:
      • Maintain good customer relationships
      • Continuously improve existing products and develop new ones
      • Keep costs low to maintain low prices

    Understanding Markets

    • A market refers to the total number of customers and potential customers, as well as sellers, for a particular good or service.

    Types of Markets

    Mass Markets

    • A mass market is a market with a large number of sales, where products are designed to appeal to the whole market and most customers.
    • Examples: aspirin, washing soap
    • Advantages:
      • High total sales
      • Opportunities for business growth
    • Disadvantages:
      • High competition between businesses
      • High costs of advertising and promotion

    Niche Markets

    • A niche market is a small, specialized segment of a larger market, where products are designed and sold to a small number of customers.
    • Examples: Rolex watches, designer clothes
    • Advantages:
      • Small businesses can successfully sell to a niche market
      • Consumer needs can be closely focused on
    • Disadvantages:
      • Limited sales potential
      • High competition

    The Marketing Department

    • The marketing department is responsible for identifying customer wants and satisfying them profitably.
    • The structure of a typical marketing department includes:
      • Sales team
      • Market research section
      • Promotion section
      • Distribution section
    • The sales team is responsible for selling the product, with separate sections for each region.
    • The market research section finds out customer needs, tracks market changes, and gathers research information to inform business decisions.
    • The promotion section organizes and produces advertising, decides on promotion types and advertising media.
    • Distribution transports products to the market.

    The Role of Marketing

    • The central role of marketing involves:
      • Identifying customer needs
      • Maintaining customer loyalty and building customer relationships
    • The marketing department helps a business:
      • Raise customer awareness
      • Increase revenue and profitability
      • Increase or maintain market share
      • Enter new markets
      • Develop new products or improve existing ones

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    Explore how changes in income and unemployment rates affect consumer spending habits and business competitiveness. Learn how the rise of ecommerce and internet has increased market competition.

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