Business Studies Multiple Choice Question – 5 December 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Business Studies

Mario wants to open a restaurant specialising in South American cuisine. He thinks there might be a gap in the market in his home town of Stafford. He has drawn up a market map to identify where there any gaps in the market. There are currently 8 restaurants in Stafford.

Which ONE of the following are benefits to Mario from segmenting the market? Segmenting the market will help to……

Select ONE answer:

  1. Determine a product
  2. Improve internal communication in the business
  3. Reduce start-up costs
  4. Reduce staff turnover
  5. Focus on a specific customer group

Show your workings to arrive at your answer, and explain and justify your reasons using the diagram:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 5 – A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes. Each market segment is unique, and businesses use various criteria to create a target market for their product or service. Businesses approach each segment differently, after fully understanding the needs, lifestyles, demographics, and personality of the target consumer within the segment.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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