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A mobile phone company is moving to a niche market focus - HSC - SSCE Business Studies - Question 22 - 2006 - Paper 1
Question 22
A mobile phone company is moving to a niche market focus. The concept the company is aiming to develop is relationship marketing. (a) Identify ONE feature of a nich... show full transcript
Worked Solution & Example Answer:A mobile phone company is moving to a niche market focus - HSC - SSCE Business Studies - Question 22 - 2006 - Paper 1
Step 1
Identify ONE feature of a niche market.
Answer
A niche market is characterized by a concentrated focus on a specific segment of consumers with particular needs or preferences. This allows companies to tailor their products and services specifically to these consumers, thereby maximizing customer satisfaction.
Step 2
Describe relationship marketing.
Answer
Relationship marketing is a strategy designed to foster customer loyalty and engagement by emphasizing personalized interaction and long-term relationships with customers. It involves understanding customers' specific needs and preferences, offering tailored services, and maintaining ongoing communication to build trust and satisfaction.
Step 3
Identify ONE strategy that the mobile phone company could use to develop relationship marketing, and explain ONE possible impact of the strategy on EITHER the customer OR the company.
Answer
One effective strategy is to implement a customer loyalty program that rewards repeat purchases and enhances customer engagement. This could involve offering exclusive discounts, early access to new products, or personalized services. The impact on the customer could be significant, as they would feel valued and appreciated, leading to increased customer satisfaction and likelihood of repeat business. On the company side, this strategy can improve customer retention rates and boost overall sales.