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neurologyYou need to know

• Customer needs are the features or benefits that customers see as essential, whereas customer wants are the additional preferences that make an offer more attractive.
• Marketing helps a business identify customer needs and wants so it can offer products and services that customers are willing to buy.
• Identifying customer needs helps a business decide the most suitable product features, quality level and range.
• Identifying customer needs helps a business set a price that matches customers' budgets and perceptions of value.
• Identifying customer needs helps a business choose the most effective place to sell, such as in-store, online or by delivery.
• Identifying customer needs helps a business choose promotional methods that are most likely to attract and retain customers.
• Identifying customer needs helps a business decide which after-sales service, such as guarantees, repairs or returns, customers expect.
• The marketing mix should be based on customer needs because product, price, promotion and place decisions must work together to attract target customers.
• A business that satisfies customer needs is more likely to increase sales because customers see the product or service as meeting their requirements.
• Satisfying customer needs reduces the risk of costly mistakes such as launching unsuitable products or using ineffective promotion.
• Businesses that fail to identify customer needs may waste money on products, prices or promotional campaigns that customers do not want.
• Businesses that respond to changing customer tastes can stay competitive by adapting features such as design, style or convenience.
• Satisfying customer needs can create a competitive advantage when customers judge a business more favourably than its rivals.
• Customers are more likely to make repeat purchases when a business consistently satisfies their needs.
• Customer loyalty can improve profit because retaining existing customers is often cheaper than constantly attracting new ones.
• Satisfied customers can improve a business's reputation through recommendations and positive online reviews.
• Well-known brands may find it easier to attract customers because brand recognition can increase confidence in a purchase.
• Price is an important customer consideration because most customers compare affordability with the value they expect to receive.
• Quality is an important customer consideration because customers expect products and services to be reliable and fit for purpose.
• Choice is an important customer consideration because different customers prefer different features, styles and levels of quality.
• Convenience is an important customer consideration because customers value easy access, simple ordering and suitable delivery or payment options.
• Retail businesses can satisfy customer needs through convenient locations, attractive stores and products being available when customers want them.
• Online retailers can satisfy customer needs through clear websites, fast delivery and straightforward returns.
• Good customer service and knowledgeable staff are especially important when customers need advice before making a complex purchase.
• Market segmentation is the process of dividing a broad market into smaller groups of customers with similar characteristics, needs or buying behaviour.
• A market segment is a group of customers who are likely to respond in a similar way to a product or marketing message.
• Businesses use market segmentation to identify a target market, which is the specific segment or segments a business chooses to focus on.
• Market segmentation helps a business adapt its marketing mix to the needs of customers who are most likely to buy.
• Market segmentation can reduce wasted marketing spend because promotion is directed at customers whose needs match the product.
• Effective market segmentation can increase sales and customer loyalty because products and marketing are better matched to customer needs.
• Businesses often use more than one segmentation variable at the same time because customer behaviour is influenced by several factors.
• Common segmentation variables include age, gender, income, location and lifestyle.
• Age segmentation divides customers by age because needs, interests and spending patterns often change at different life stages.
• Changes in the age structure of the population can change the level and pattern of demand for products and services.
• Gender segmentation divides customers by gender when evidence suggests that male and female customers have different preferences or buying habits.
• Location segmentation divides customers by where they live because climate, local culture and regional preferences can affect demand.
• Location segmentation can be used to tailor products and promotion to local, regional, national or international markets.
• Income segmentation divides customers by earnings or disposable income because spending power affects what customers can afford.
• Income segmentation allows businesses to position products at different price levels, from budget ranges to premium ranges.
• Lifestyle segmentation groups customers by interests, attitudes or way of life when these factors influence product choice.
• Not all customers within the same market segment behave identically, so segmentation improves targeting but does not predict behaviour perfectly.
• Some customers fit more than one market segment, which can make it harder for a business to define a clear target market.
• Effective market segmentation usually depends on market research, so collecting reliable customer data can increase costs.
• A market segment must be large enough and profitable enough for a business to justify targeting it.
• Customers outside a business's target market may still buy the product, but the marketing mix is designed mainly for the chosen segment.
• Market research is the systematic collection and analysis of information about customers, competitors and the market to support business decisions.
• Market research helps a business identify customer needs, wants and buying habits so it can design products and services that are more likely to succeed.
• Market research helps a business estimate likely demand for a product or service before launch or expansion.
• Market research helps a business identify the size and characteristics of its target market.
• Market research helps a business understand competitors' products, prices, promotion and market position.
• Market research can reveal gaps in the market where customer needs are not being met fully.
• Market research reduces the risk of launching a new product, changing price or entering a new market because decisions are based on evidence rather than guesswork.
• Market research informs decisions about product, price, promotion and place.
• Regular market research is especially important in dynamic markets where customer preferences and competitor actions change quickly.
• Market research can improve forecasting, stock decisions and marketing budgets by providing more accurate information.
• Primary market research is the collection of new data directly from original sources, usually customers in the target market.
• Primary market research usually uses a sample that is intended to represent the target market.
• A sample is a subset of the target market selected to take part in the research.
• A larger and more representative sample is more likely to produce reliable findings.
• Primary market research usually provides up-to-date information tailored to a business's specific objectives.
• Primary market research can be expensive and time-consuming, especially for small businesses.
• Questionnaires and surveys collect primary data by asking the same questions to many respondents.
• Online questionnaires are quick and low-cost, but low response rates or unclear questions can reduce reliability.
• Interviews collect primary data through direct questioning and allow follow-up questions to explore answers in more detail.
• Interviews can produce rich information, but they usually take longer and cost more than questionnaires.
• Focus groups collect qualitative data by guiding discussion among a small group of target customers.
• Focus groups can reveal motives and attitudes in depth, but strong personalities can influence the discussion.
• Observation collects primary data by watching how customers behave in shops, on websites or in other selling environments.
• Observation can show what customers do, but observation may not explain why customers behave in that way.
• Test marketing involves trialling a product or marketing mix with a limited group of customers before a full launch.
• Test marketing can reduce risk before a full launch, but competitors may observe the new idea.
• Secondary market research is the use of existing data that has already been collected by someone else.
• Secondary market research can come from internet research, newspapers, trade journals, government publications, company reports and market analysis reports.
• Secondary market research is usually cheaper and faster to obtain than primary market research.
• Secondary market research can be useful for estimating market size, identifying trends and researching competitors.
• Secondary market research may be less relevant to a specific business because it was collected for a different purpose.
• Secondary market research may be out of date or inaccurate, especially in fast-changing markets.
• Businesses should judge secondary sources by their reliability, relevance, cost and currency.
• Businesses often combine primary and secondary research to build a fuller picture of the market.
• Qualitative market research collects non-numerical information about opinions, motives, attitudes and preferences.
• Quantitative market research collects numerical information that can be counted, measured and analysed statistically.
• Focus groups and interviews usually produce qualitative data.
• Questionnaires with closed questions usually produce quantitative data.
• The most suitable research method depends on the business's objectives, budget, timescale and target market.
• A geographically dispersed target market is often researched more efficiently through online or telephone methods than through face-to-face methods.
• Research into physical products may require observation, product trials or face-to-face feedback because customers need to experience the product directly.
• Businesses use market research findings to make decisions about product design, price, promotion, place and market entry.
• Qualitative findings help a business understand why customers think or behave in a particular way.
• Quantitative findings help a business measure demand, compare options and identify patterns or trends.
• Market research data is often organised in tables, charts or spreadsheets so that patterns can be analysed clearly.
• A table presents figures in rows and columns so that categories and totals can be compared.
• A bar chart compares separate categories of data such as preferences for different products.
• A pie chart shows how a total is divided between categories such as competitors' shares of a market.
• Data from tables and charts can be interpreted to identify trends, compare performance and support justified business decisions.
• Market size is the total sales in a market over a given period and can be measured by volume or value.
• Sales volume is the number of units sold.
• Sales value is the total revenue from sales.
• Sales revenue is calculated by multiplying selling price by quantity sold.
• Market share is the percentage of total market sales gained by one business.
• Market share is calculated by dividing a business's sales by total market sales and multiplying by 100.
• Market size data helps a business judge whether a market offers enough demand to enter or expand in.
• Market share data helps a business assess its competitive position and whether its performance is improving or weakening.
• The sales value represented by a percentage market share can be calculated by converting the percentage to a decimal and multiplying by total market sales.
• The marketing mix is the combination of product, price, promotion and place decisions that a business uses to market a product or service.
• The four elements of the marketing mix are product, price, promotion and place.
• Businesses use the marketing mix to meet the needs of a target market while also achieving objectives such as sales growth, market share or profit.
• The four elements of the marketing mix are interdependent, so a change in one element usually affects the others.
• An effective marketing mix gives customers a clear and consistent offer that can differentiate a business from competitors.
• Businesses usually adapt the marketing mix over time as products, competitors and customer expectations change.
• A product can be a physical good or a service sold to customers.
• Product decisions include features, quality, design, branding and packaging.
• Product design must match the needs and preferences of the target market if the product is to sell successfully.
• The design mix balances function, aesthetics and cost.
• Function is what a product does and how well the product performs.
• Aesthetics is the sensory appeal of a product, including features such as appearance, texture, sound, aroma or taste.
• Cost in product design is the expense of making, distributing and selling the product at a viable price.
• Businesses must balance product quality and design with the price that the target market is willing to pay.
• A brand is a name, symbol or design that identifies a product or business and distinguishes it from competitors.
• Brand image is the overall impression that customers have of a brand.
• A unique selling point is a feature or benefit that makes a product stand out from rival products.
• Strong branding can improve customer recognition, build trust and encourage repeat purchases.
• A strong brand image can support premium pricing because customers may associate the brand with quality or status.
• Product differentiation means making a product appear different from competitors' products through features, quality, design, branding or service.
• New product development helps a business respond to changing customer needs and remain competitive.
• New product development usually includes idea generation, screening, prototype development, test marketing and launch.
• A prototype is an early version of a product that allows a business to test design and production issues before full launch.
• Test marketing reduces risk because a business can measure customer response before committing to a full launch.
• New product development can increase sales, attract new customers and reduce reliance on existing products.
• New product development is risky because it can be expensive and a new product may fail if customer demand has been misjudged.
• An unsuccessful new product can waste resources and damage the brand image of the business.
• The product life cycle describes the stages that a product passes through from development to decline.
• The main stages of the product life cycle are development, introduction, growth, maturity and decline.
• During the development stage, a business usually has high research and development costs but no sales revenue.
• During the introduction stage, sales are usually low and promotion costs are often high.
• During the growth stage, sales rise quickly and profits often improve.
• During the maturity stage, sales are high but growth slows because the market becomes saturated.
• During the decline stage, sales fall because the product loses appeal or is replaced by alternatives.
• Extension strategies are actions taken to delay decline and maintain demand for a product.
• Extension strategies include updating packaging, adding features, changing the target market, increasing advertising and reducing price.
• Extension strategies are most effective when the chosen action matches the reason why demand is falling.
• A product portfolio is the full range of products or services offered by a business.
• Broadening a product portfolio can increase sales opportunities and reduce the risk of depending on one product.
• A balanced product portfolio allows cash generated by some products to support investment in other products.
• The Boston Matrix helps a business analyse its product portfolio using market growth and market share.
• The four categories in the Boston Matrix are cash cows, stars, question marks and dogs.
• A cash cow is a product with high market share in a low-growth market.
• Cash cows usually generate strong positive cash flow and require relatively little further investment.
• A star is a product with high market share in a high-growth market.
• Stars often generate high sales revenue but still need investment to protect or increase market share.
• A question mark is a product with low market share in a high-growth market.
• Question marks often consume cash because the business must invest heavily if it wants to increase market share.
• A successful question mark may become a star if investment leads to strong growth in market share.
• A dog is a product with low market share in a low-growth market.
• Dogs usually offer limited profit and limited future potential.
• Businesses use the Boston Matrix to decide which products to invest in, maintain or withdraw.
• Price is the only element of the marketing mix that directly generates revenue.
• Pricing decisions affect demand, sales revenue, profit and brand image.
• In most markets, demand falls when price rises and demand rises when price falls.
• Demand is usually less sensitive to price changes when a product has a strong brand, few close substitutes or a clear unique selling point.
• Pricing decisions are influenced by costs, the nature of the market, the degree of competition and the stage of the product life cycle.
• Prices must cover costs in the long term if a business is to remain financially viable.
• The nature of the market affects pricing because luxury, niche and mass-market products do not all support the same price level.
• The degree of competition affects pricing because businesses in highly competitive markets usually have less freedom to charge high prices.
• A pricing method is the approach used to decide the price of a product or service.
• Cost-plus pricing sets price by adding a profit margin to unit cost.
• Cost-plus pricing is simple to use and helps ensure that each sale contributes towards profit.
• Cost-plus pricing can be unsuitable if competitors charge less or if customers are unwilling to pay the calculated price.
• Competitive pricing sets price by comparing the business's price with the prices charged by rivals.
• Competitive pricing is common in markets where many businesses sell similar products.
• Competitive pricing can help protect market share, but it can also keep profit margins low.
• Price skimming sets a high initial price for a new product and lowers the price later.
• Price skimming is most suitable for innovative or differentiated products with strong early demand.
• Price skimming can help a business recover development costs quickly.
• Price skimming may limit sales volume at launch and can attract competitors if profits appear high.
• Penetration pricing sets a low initial price to attract customers quickly and gain market share.
• Penetration pricing can increase sales volume rapidly and make it harder for competitors to respond.
• Penetration pricing usually reduces profit per unit in the short term.
• Loss leader pricing sets the price of one product below cost to attract customers who may then buy other products.
• Loss leader pricing can increase footfall and total basket value, but the method fails if customers buy only the loss leader.
• A product at the introduction stage may use skimming or penetration pricing depending on whether the business prioritises early profit or market share.
• A product at maturity or decline is more likely to face competitive pricing or price reductions to maintain sales.
• A price that is too low can damage the image of a premium product because customers may associate low price with low quality.
• Promotion is the element of the marketing mix that communicates with customers to inform, persuade and remind them.
• Businesses promote products to inform customers, increase sales, change or reinforce brand image and persuade customers to buy.
• The promotional mix is the combination of promotional methods used by a business.
• Advertising is paid-for promotion delivered through media such as newspapers, magazines, television, the internet and billboards.
• Advertising can reach large audiences quickly and allows a business to control the promotional message.
• Advertising can be expensive and may have limited effect if customers ignore the message.
• Public relations is the management of a business's reputation and its relationships with the public.
• Public relations can improve credibility and brand image because customers may trust unpaid media coverage more than advertising.
• Public relations gives a business less control over the final media message than advertising does.
• Sales promotion uses short-term incentives to encourage customers to buy.
• Point-of-sale displays, two-for-one offers, free gifts, free samples, coupons and competitions are all forms of sales promotion.
• Sales promotion can increase short-term sales and encourage customers to try a product.
• Sales promotion can reduce profit margins and may train customers to wait for discounts.
• Sponsorship is a promotional method in which a business supports an event, team or organisation in return for publicity.
• Sponsorship can increase brand awareness and link the business with a particular image or audience.
• Sponsorship can be expensive and may damage the business if the sponsored event or person receives negative publicity.
• Social media promotion uses online platforms to share content, target audiences and interact directly with customers.
• Social media can be a cost-effective way to reach a specific target market and encourage customer engagement.
• Social media requires regular monitoring because negative comments can spread quickly in public.
• The finance available to a business affects the promotional mix because expensive methods may be unaffordable.
• Competitor actions affect the promotional mix because businesses may need to increase or change promotion to protect market share.
• The nature of the product affects the promotional mix because some products need demonstration, specialist explanation or a prestige image.
• The nature of the market affects the promotional mix because mass markets often require broad-reach media while niche markets often require targeted media.
• The target market affects the promotional mix because businesses should choose media that the target customers use and trust.
• An effective promotional mix supports the rest of the marketing mix rather than sending a conflicting message about the product.
• Place is the element of the marketing mix concerned with where customers buy a product and how the product reaches them.
• Good place decisions make products convenient for customers to find and buy.
• Distribution channels are the routes through which products move from producer to final customer.
• A two-stage distribution channel moves a product from the producer to the retailer and then to the customer.
• A three-stage distribution channel moves a product from the producer to the wholesaler, then to the retailer and finally to the customer.
• Retailers sell products directly to final consumers.
• Wholesalers buy products in bulk and sell them on to retailers.
• Telesales is a direct distribution method in which a business sells to customers over the telephone.
• Direct distribution gives a business more control over the customer relationship and the selling process.
• Indirect distribution through wholesalers and retailers can increase market coverage and make products more widely available.
• The most suitable distribution channel depends on the nature of the product, the target market, costs and the level of availability that the business wants.
• E-commerce is the buying and selling of goods and services over the internet.
• Businesses can use e-commerce through their own websites or through online marketplaces.
• E-commerce can extend the reach of a business beyond its local area and into international markets.
• E-commerce allows customers to compare products and buy at any time, which increases convenience.
• E-commerce can help a business reach more customers without relying only on physical stores.
• E-commerce increases competition because customers can compare prices and switch to rivals more easily.
• E-commerce requires secure payment systems, reliable delivery and effective stock control.
• Setting up and operating e-commerce can be costly because businesses may need websites, digital marketing, warehousing and delivery systems.
• Some customers are unwilling to buy online because of concerns about fraud, security or poor after-sales service.
• E-commerce can be less suitable for products or services that customers prefer to inspect in person before buying.
• Technical failures or poor internet access can prevent online sales.
• M-commerce is the buying and selling of goods and services through mobile devices such as smartphones.
• M-commerce increases convenience because customers can browse and buy while away from fixed locations.
• Mobile apps and mobile-optimised websites can make purchasing faster and easier on a phone.
• Businesses can use text messages, app notifications and mobile promotions to encourage purchases and keep customers informed.
• An integrated marketing mix combines product, price, promotion and place in a way that supports the same target market and business objectives.
• A premium product usually needs a higher price, promotion that communicates quality and selective distribution that supports an exclusive image.
• A low-price product usually needs efficient distribution and promotion that emphasises value for money.
• An inconsistent marketing mix can confuse customers and weaken the position of a product in the market.
• Businesses use the marketing mix to turn marketing objectives into practical decisions about what to sell, what to charge, how to promote and where to sell.
• The marketing mix usually changes over time as a product moves through the product life cycle.
• Businesses may need to change the marketing mix in response to new competition, changes in consumer income, legal change, technological change or shifts in customer preferences.
• Businesses that review the marketing mix regularly are better able to respond to market change and maintain competitiveness.

• Distinguish customer needs from customer wants in a given market scenario.
• Select suitable product, price, place, promotion and after-sales decisions from evidence about customer needs.
• Explain how satisfying customer needs can increase sales, loyalty, profit and competitive advantage for a business.
• Segment a market using age, gender, income, location and lifestyle data.
• Identify a suitable target market from segmentation data and justify why it is attractive.
• Choose appropriate primary and secondary market research methods for a stated business objective.
• Differentiate between qualitative and quantitative market research data.
• Interpret tables, bar charts and pie charts to identify patterns, trends and customer preferences.
• Calculate sales revenue from selling price and quantity sold.
• Calculate market share as a percentage of total market sales.
• Calculate the sales value represented by a stated percentage market share.
• Recommend product design decisions by balancing function, aesthetics and cost for a target market.
• Identify an effective unique selling point or branding approach for a product in a competitive market.
• Classify products by product life cycle stage from sales and profit evidence.
• Recommend suitable extension strategies to delay product decline.
• Use Boston Matrix evidence to decide whether a product should be invested in, maintained or withdrawn.
• Select an appropriate pricing method from cost-plus, competitive, skimming, penetration and loss leader pricing.
• Choose a promotional mix that matches the product, target market, finance and competitor context.
• Select an appropriate distribution channel or e-commerce approach for a product and target market.
• Evaluate whether a marketing mix is integrated and suitable for a stated target market and business objective.