Unit 2 Test: Select Target Market

What is the term for the division of a market into smaller groups based on characteristics such as age, income, or geographic location?

• Market share

• Market segmentation

• Market potential

• Market analysis

What does the term "market share" refer to?

• The overall size of a market

• A segment of a market based on location

• The percentage of total sales a company has within a market

• The financial potential of a market

Which of the following defines "embargo"?

• A policy that restricts trade with a particular country

• A tax on imports or exports

• A strategy used to identify market segments

• A group of consumers that a company aims to sell to

A company’s ability to analyze potential success within a market is referred to as:

• Market segmentation analysis

• Market potential

• SWOT analysis

• Unique selling proposition

Which of the following is an example of a factor used to assess the potential success of market segments?

• Demand elasticity

• Advertising budget

• Consumer preferences

• Market trends

Which information source is most commonly used for identifying market potential?

• Competitor analysis

• Internal company reports

• Demographic and psychographic data

• Production capacity

What is the purpose of conducting market segmentation analysis?

• To predict future market trends

• To identify specific groups of consumers within a broader market

What is the first step in selecting a target market?

• Evaluate competitors

• Assess market potential

• Segment the market

• Conduct SWOT analysis

Which term refers to the perception that a company's products are superior to others in the market?

• Market potential

• Unique selling proposition

• Market share

• Embargo

Which of the following is a global target market implication for companies?

• They must focus on a single market segment

• They need to adapt their product offerings to local preferences

• They are limited to local competition

• They cannot expand beyond the domestic market