Understanding Target Markets

What is a target market?

• A group of customers that will buy a product or service.

• A list of potential suppliers for a business.

• A collection of marketing strategies.

• A set of financial goals for a company.

How does identifying a target market help a business?

• It helps focus on the area with most sales.

• It increases the number of employees.

• It reduces the cost of production.

• It guarantees a higher profit margin.

What should a business consider when determining the price of products and services?

• The target market and how much they are willing to pay.

• The cost of raw materials only.

• The number of competitors in the market.

• The location of the business.

What does a value proposition state?

• The price of a product

• Why a customer should do business with a company

• The location of a company

• The history of a company

What is primary data?

• Data from articles and journals

• Data from first-hand accounts like interviews and surveys

• Data from social media

• Data from advertisements

What is a characteristic of secondary data?

• It is always unbiased

• It is collected through surveys

• It often includes personal bias

• It is more accurate than primary data

What is direct competition?

• A business that sells the same or similar products or services.

• A business that sells unrelated products.

• A business that operates in a different industry.

• A business that sells products online.

Which of the following is an example of indirect competition?

• A nearby bakery for an ice cream parlor.

• Another ice cream parlor in the same area.

• A sandwich shop next to another sandwich shop.

• A coffee shop selling the same brand of coffee.

What does SWOT stand for in a SWOT analysis?

• Strengths, Weaknesses, Opportunities, Threats

• Strategies, Weaknesses, Options, Tactics

• Strengths, Weaknesses, Objectives, Targets

• Solutions, Weaknesses, Opportunities, Threats

Which of the following is considered an internal factor in a SWOT analysis?

• Opportunities

• Threats

• Strengths

• Externalities