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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 significant feature of a niche market is its concentrated focus on a specific segment of consumers who have particular needs and preferences. This market caters to a smaller group of buyers, making products or services tailored specifically to them.
Step 2
Describe relationship marketing.
Answer
Relationship marketing refers to the strategy of engaging with customers to foster a long-term relationship rather than focusing solely on individual sales. This approach involves understanding customer needs, providing personalized experiences, and maintaining communication with customers to enhance loyalty and satisfaction. Effective relationship marketing aims for customer retention and building brand loyalty over time.
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 strategy that the mobile phone company could employ is the implementation of a customer loyalty program. This program can offer rewards, discounts, and personalized offers to loyal customers. An impact of this strategy on the customer is the increased sense of value and appreciation, leading to higher customer satisfaction and retention. As customers feel rewarded for their loyalty, they are more likely to continue using the company's products and services, which can lead to increased sales and profitability for the company.