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Questions and Answers
What is the primary objective of Market Analysis?
What is a market defined as?
What is Market Identification?
What is one of the skills required to understand a target market?
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What does Market Analysis help to answer?
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What is one of the objectives of Market Analysis?
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What is the primary driver of market growth?
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What is the purpose of identifying market segments and targets?
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What is market targeting a stage in?
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What is the primary purpose of market trends?
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What is the method used to sort potential clients for sales and marketing campaigns?
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What is market growth rate?
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What can a distribution channel be?
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What is an uptrend in technical analysis?
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What is a bear market in technical analysis?
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What is the market size in the context of market analysis?
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What is the purpose of the 7 dimensions of market analysis?
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What is the primary goal of identifying target markets in an entrepreneurial venture?
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What is the definition of market segmentation?
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What is demographic segmentation based on?
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What is one of the steps involved in identifying target markets?
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Why is it important to identify major competitors in target market identification?
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What type of marketing segmentation involves dividing customers into groups based on geographic characteristics?
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Which of the following is NOT a characteristic used in psychographic segmentation?
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What is the main goal of dividing consumers into groups in marketing segmentation?
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Which type of segmentation is commonly used in marketing?
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What is the name of the person who said 'Business opportunities are like buses. There's always another one coming.'?
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Study Notes
Market Definition and Importance
- Market comprises all buyers and sellers in a region, influenced by supply and demand forces affecting item value, cost, and price.
- Market identification is a strategic marketing approach to define specific customers for products.
Skills for Understanding Target Market
- Group markets for segmentation purposes.
- Identify a specific segment to focus marketing efforts.
- Familiarize with target demographics.
- Analyze competition offering similar products/services.
- Estimate size of the target market likely to purchase the product or service.
Market Analysis Overview
- Identifies and assesses business opportunity attractiveness using both quantitative and qualitative methods.
- Objectives include determining market attractiveness, discovering new business opportunities, segmenting and positioning products in the market.
Key Questions Addressed by Market Analysis
- Who are the customers?
- Where are they located?
- What are their needs?
- How do they make buying decisions?
- Where do they prefer to buy?
Market Dynamics
- Market growth directly tied to consumer demand.
- Additional focus on industry cost structure and key factors essential for success.
Distribution Channels
- Channels can be direct or involve various intermediaries connecting vendors to customers.
Target Market Identification
- Method to categorize potential clients for sales and marketing based on demographic, income, and lifestyle characteristics.
Market Targeting Process
- Identifies buyers with common traits and determines effective marketing communication strategies.
Dimensions of Market Analysis
- Market size, trends, growth rates, profitability, cost structures, distribution channels, and key success factors are crucial components.
Market Size and Trends
- Market size indicates the volume of potential sales.
- Market trends reflect asset price directions over time, with bull markets indicating upward trends and bear markets signifying downward trends.
Market Growth Rate
- Represents changes in market size as a positive or negative percentage, illustrating demand fluctuations for products or services.
Steps to Identify Target Markets
- Define potential needs for products/services.
- Research sales volumes across diverse demographics.
- Analyze sources of necessary raw materials.
- Identify main competitors to locate target markets effectively.
Market Segmentation
- Involves identifying and analyzing buyers in a product market with shared characteristics.
Demographic Segmentation
- A common audience identification approach based on data points, helping tailor marketing efforts effectively.
Psychographic Segmentation
- Divides consumers into groups based on psychological attributes such as personality, lifestyle, and interests.
Geographic Segmentation
- Segments customers by geographical characteristics, allowing for targeted marketing strategies.
Entrepreneurial Insight
- "Business opportunities are like buses. There's always another one coming." - Richard Branson highlights the continual nature of business prospects.
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Description
Learn about market identification and analysis, a strategic marketing approach to define the specific customer of a product. Acquire skills to understand your target market, including how to group and analyze data.