Year 9: Business Summer: Homework 1

What does budgeting mean for a business?

• Planning how to spend personal finances

• Planning how to allocate resources and finances for a business

• A method to calculate taxes for a business

• A strategy for marketing and advertising

List two ways a business might choose a particular location to start its business activity.

• Based on the owner's personal preference and the local weather

• Based on the cost of the property and the owner's birthplace

• Based on market research and availability of resources

• Based on the flip of a coin and the phase of the moon

What is the purpose of market segmentation?

• To increase the number of customers

• To focus more on the customers likely to be interested in the product(s)

• To expand the whole market

• To reduce the quality of the product(s)

What might a business do to market a product aimed at a particular group, such as girls?

• A) Stop selling the product to other groups.

• B) Tailor the product to make it more appealing and advertise in places the target group is likely to see.

• C) Only sell the product online.

• D) Increase the price of the product.

What is an example of a market segment based on occupation?

• Gym equipment targeted at personal trainers

• Pound shops targeted at low income families

• Luxury cars targeted at students

• Fast food restaurants targeted at retirees

What type of market segmentation is based on how much customers earn?

• Geographic segmentation

• Demographic segmentation

• Income segmentation

• Psychographic segmentation

Which business targets a market segment based on income?

• A technology store targeting high-income individuals

• A gym targeting young athletes

• A bookstore targeting teachers

• Pound shops targeting low income families

What is a result of a business having greater knowledge of their customers and the market?

• Decreased chance of making sales.

• Less focused marketing efforts.

• Greater chance of making sales/increasing sales.

• More difficulty in targeting the right customers.

Why is it important for a business to have a clear target market?

• To ensure the business can cater to everyone equally

• To make the business operations more complicated

• To tailor its products, services, and marketing efforts to a specific group of customers

• To spend more money on advertising

What is the primary goal of conducting market research?

• To find the best office location

• To understand customer needs and market trends

• To decide which products to discontinue

• To choose the company logo