Identifying Viable Business Opportunities
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What is the purpose of identifying the demographics of the target market?

  • To establish the geographic location of the target market
  • To predict the future trends of the market
  • To understand the external characteristics of the potential customers (correct)
  • To determine the competition in the market

    • How does geography play a role in identifying the target market?

  • It focuses on the psychological aspects of the target market
  • It involves setting up the business in a location to reach the target market (correct)
  • It determines the historical background of the target market
  • It analyzes the technological advancements of the target market

    • What is the significance of psychographic approaches in identifying the target market?

  • It focuses on the income levels of the potential customers
  • It helps in understanding the lifestyle and behavioral traits of the potential customers (correct)
  • It determines the age and gender distribution in the market
  • It analyzes the educational background of the potential customers

    • Why is it important for an entrepreneur to know the demographics of their customers early in the business planning stage?

    <p>To tailor the product or service to meet the needs of the target market</p> Signup and view all the answers

    What does demography describe in the context of identifying the target market?

    <p>The vital external characteristics of the target market as human beings</p> Signup and view all the answers

    What are the three main ways an entrepreneur can find their target market according to the text?

    <p>Geographic, demographic, and psychographic approaches.</p> Signup and view all the answers

    What does demography describe in the context of identifying the target market?

    <p>Demography describes the vital external characteristics of the target market as human beings: where they live, how they live, how much money they earn, where they studied.</p> Signup and view all the answers

    Why is it important for an entrepreneur to know the demographics of their customers early in the business planning stage?

    <p>It is important for an entrepreneur to know the demographics of their customers early in the business planning stage because without a prospective market, the product will not move or sell.</p> Signup and view all the answers

    What is the significance of psychographic approaches in identifying the target market?

    <p>Psychographic approaches help the entrepreneur to understand the lifestyle, social class, and personality characteristics of the target market.</p> Signup and view all the answers

    What role does geography play in identifying the target market according to the text?

    <p>Geography has something to do with the place or location where the business will be set up to reach the target market.</p> Signup and view all the answers

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