Edexcel A Level Business: Meeting Customer Needs

Meeting Customer Needs: Market Positioning

• Market Segmentation: Divides a market into distinct groups of buyers based on needs, preferences, or characteristics to tailor marketing strategies effectively.
• Online Retailing: Selling goods or services via the internet, allowing businesses to reach a wider audience.
• Bias in Market Research: Systematic errors that can affect research outcomes, shaping results based on preconceived opinions or influences.

Product and Market Orientation

• Product Orientation: Focus on production capabilities and product features; suitable when there’s low competition and limited consumer knowledge (e.g., specialized products like dental braces).
• Market Orientation: Centers on identifying and fulfilling customer needs and wants to ensure profitability; requires active consumer engagement.
• Apple Example: Known for innovation, but product development may not directly align with current consumer desires since they often explore unknown technological possibilities.
• Gillette Example: Develops razors based on technological capabilities rather than specific consumer preferences.

Market Mapping

• Definition: A visual method of identifying brand positioning relative to market variables, helping to detect market gaps.
• Axes Variables: Market maps are categorized along axes like quality (high to low) and pricing (premium to budget), allowing visualization of brand distribution.
• Example Activity: Students can create a market map plotting clothing brands (e.g., Primark, Dior) based on quality and pricing, identifying potential market gaps.

Uses of Market Mapping

• Identifying Market Gaps: Helps businesses spot opportunities in a saturated market by locating areas with unmet consumer needs.
• Start-Up Strategy: Guides new businesses in choosing products and services aligned with market demand instead of solely relying on existing capabilities.
• Repositioning: Aids established brands in adjusting their market image to attract new demographics or redefine their marketplace presence (e.g., The North Face targeting a younger audience).

This quiz focuses on Chapter 131 of the Edexcel International A Level Business curriculum, covering key concepts in market segmentation and market orientation. It includes definitions, comparisons, and explanations of how market research can help anticipate customer needs, essential for understanding business strategies.