14806425
Description
Mind Map by Rhianna Nicoll, updated more than 1 year ago
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Created by Rhianna Nicoll
almost 6 years ago
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5.1 - Identifying and understanding customers
- Keywords
- Exchange - when someone gives up something in return for
something else e.g. products for money
- need - something that needs to be fulfilled for us to survive
- Want - what we would like to satisfy our needs
- customer - someone who buys a product from a business
- consumer - someone who uses good and services produced by business
- Exchange - when someone gives up something in return for
something else e.g. products for money
- An exchange process
- businesses must ensure that the
investment of time, money and labour is
exchanged for a sufficient amount to make
a profit
- customers need to believe the
amount they pay for a product is
value for money
- businesses must ensure that the
investment of time, money and labour is
exchanged for a sufficient amount to make
a profit
- identifying a business opportunity
- businesses must offer products that customers
want to buy, so they have to identify peoples
needs and wants
- businesses must offer products that customers
want to buy, so they have to identify peoples
needs and wants
- difference between customer and consumer
- a customer is someone who buys a product, a consumer is
someone who uses good or services but may not necessarily
buy them e.g. buying your friend some food and they eat it.
- they are normally the same person however, businesses have to
identify needs and wants of both e.g. you may want the latest,
most expensive phone (consumer) but your parents may just want
a cheap phone to contact you in emergencies
- they are normally the same person however, businesses have to
identify needs and wants of both e.g. you may want the latest,
most expensive phone (consumer) but your parents may just want
a cheap phone to contact you in emergencies
- a customer is someone who buys a product, a consumer is
someone who uses good or services but may not necessarily
buy them e.g. buying your friend some food and they eat it.
- increasing sales
- the key to a business increasing sales is to
provide a better or unique product/service than
competitors
- e.g. Dyson's new hairdryer looks
unique but claims to dry hair more
effectively without damage
- e.g. Dyson's new hairdryer looks
unique but claims to dry hair more
effectively without damage
- different features may increase sales even if the product
is more expensive
- a product or service can cost a similar price to others
but add features e.g. uber is a taxi service but can be
done from an app and gives a price before booking,
dramatically increasing sales
- a product or service can cost a similar price to others
but add features e.g. uber is a taxi service but can be
done from an app and gives a price before booking,
dramatically increasing sales
- the key to a business increasing sales is to
provide a better or unique product/service than
competitors
- selecting the correct marketing mix
- the marketing mix is a combination of
factors that influence a customers decision
to purchase something
- the marketing mix is a combination of
factors that influence a customers decision
to purchase something
- Avoiding costly mistakes
- understanding customer is the key to sales
and avoiding expensive mistakes
- if a business gets a product/service
wrong it may have to withdraw it as
sales are low
- it may have to amend it which costs money
- or may have to lower the price which can
reduce profits and future reputation and
success
- E.g. the wii u only sold 13mil compared to
the wii's 100mil so is regarded as a failure
- understanding customer is the key to sales
and avoiding expensive mistakes
- Being competitive
- the competitiveness of a business means its ability to
offer better value for money than competitors
- understanding customers wants means
the business can satisfy these wants
- the better you understand customers the
better you can provide what they want
- Competitive
- Right product, right price,
right promotion, right location
= HIGH SALES
- Right product, right price,
right promotion, right location
= HIGH SALES
- the competitiveness of a business means its ability to
offer better value for money than competitors
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