How does satisfying customer needs help a business increase sales?

Satisfied customers buy again and recommend the business to friends. Repeat purchases and word of mouth increase sales.

How does understanding customer needs help a business choose the right marketing mix?

A business that understands its customers can set the right price and design the right product. The business can also choose suitable places to sell and ways to promote.

How can identifying customer needs help a business avoid costly mistakes?

Research into customer needs shows whether a product will sell before money is spent on it. A business then avoids producing goods that nobody wants.

Why does satisfying customer needs help a business to be competitive?

Customers choose the business that best meets their needs. A business that meets needs better than its rivals will win customers from them.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Marketing

Identifying and satisfying customer needs

3 things to know
Paper 2

Overview

Customer needs and how identifying them raises sales and avoids costly mistakes, gathering feedback, changing needs over time, customer loyalty and why keeping customers costs less than winning them.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is customer loyalty, and why is keeping customers cheaper than winning new ones?

Key term

What are customer needs in marketing?

Key term

Why is it important for a business to identify customer needs?

Questions from this subtopic

Each one with the model answer underneath.

1
What are customer needs in marketing?
Model answer
Customer needs are the things customers want from a product or service. Price, quality, choice, convenience and reliability are common examples.
2
Why is it important for a business to identify customer needs?
Model answer
A business that knows its customers' needs can provide products they will actually buy. Products that meet customer needs are likely to sell well.
3
How does satisfying customer needs help a business increase sales?
Model answer
Satisfied customers buy again and recommend the business to friends. Repeat purchases and word of mouth increase sales.
4
How does understanding customer needs help a business choose the right marketing mix?
Model answer
A business that understands its customers can set the right price and design the right product. The business can also choose suitable places to sell and ways to promote.
5
How can identifying customer needs help a business avoid costly mistakes?
Model answer
Research into customer needs shows whether a product will sell before money is spent on it. A business then avoids producing goods that nobody wants.
6
Why does satisfying customer needs help a business to be competitive?
Model answer
Customers choose the business that best meets their needs. A business that meets needs better than its rivals will win customers from them.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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The pays a fee and a share of revenue.

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