Marketing, Competition And The Customer: Market Changes (Copy)
Cheat Sheet: 3.1.2 Market Changes
Why Customer Spending Patterns Change
| Factor | Explanation | Example |
|---|---|---|
| Income levels | Higher incomes → luxury demand; Lower incomes → basic goods | Recession reduces restaurant spending |
| Tastes & fashions | Trends shift quickly | Rise of plant-based food |
| Population changes | Age, size, structure affect demand | Ageing population increases demand for healthcare |
| Technology | New products/services replace old ones | Smartphones replace digital cameras |
| Seasonal factors | Demand varies with seasons | Ice cream demand in summer |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Importance of Changing Customer Needs
- Businesses must adapt to remain competitive
- Meeting new needs = customer loyalty
- Failure to adapt = loss of market share (e.g. Nokia vs. Apple)
Why Some Markets Became More Competitive
| Reason | Explanation | Example |
|---|---|---|
| Globalisation | More foreign firms enter | International clothing brands in local markets |
| Technology | Lowers entry barriers | Online retailers challenging big stores |
| Consumer awareness | More choice & comparison | Price comparison websites |
| Deregulation | Govt. reduces restrictions | More airlines competing |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
How Businesses Respond
| Response | Action | Example |
|---|---|---|
| Product innovation | Launch new/improved products | Apple launching new iPhones yearly |
| Price strategies | Competitive pricing, discounts | Supermarkets price wars |
| Improved quality | Better design, durability | Toyota focusing on reliability |
| Promotion | Advertising, social media, loyalty schemes | Coca-Cola global campaigns |
| Customer service | Faster delivery, better support | Amazon Prime one-day delivery |
Quick Revision Bullets
- Spending patterns change due to income, fashion, demographics, tech, seasons
- Businesses must adapt to changing needs → survival & growth
- Competition ↑ due to globalisation, tech, deregulation, consumer choice
- Responses = innovate, competitive pricing, better quality, strong promotion, service focus
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course