This research paper analyses the primary target market and target market selection criteria. A market is an area designated for buying and selling products. Preferably in business, a market usually refers to the customer base of an organization. Therefore, the primary target market is the segment showing the highest potential for increased sales. It is not necessarily the largest segment in the market place. The determination of this segment is through customer analysis of things in common. Moreover, researching on minority groups showing potential is also essential. Also, using demographics in characterizing the primary target market is efficient. This includes grouping by age, race, gender, education levels and geographic region. There exist various financial risks in business during the management process.
primary target market and target market selection criteria
TARGET MARKET SELECTION CRITERIA IN MARKETING
A primary target market is a vital element in marketing. It generates potential customers hence, increasing profit levels of the organization. Moreover, businesses use it for brand name improvement and customer retention. Selecting the target market requires dedication and though research for quality results. Therefore, implementing the following target market selection criteria is crucial. One considering the segment size in terms of units and sales revenue and whether it is worth entering. Secondly, the segment growth rate, that is, if it is showing potential for expansion. Additionally, the profit margin level is another crucial element for consideration. Moreover, the completion rates need to review when selecting a target market. Adhering to this criterion reduces the financial risks in business in the marketing sector.
target market selection criteria used in marketing
THE FINANCIAL RISKS ARISING IN BUSINESS OPERATIONS
Financial risks in businesses manipulate themselves in various forms. A risk is an unexpected outcome, while finances relate to monetary aspects of an organization. Therefore, financial risks are unexpected results while handling firms’ money. Managing financial risk is given the most priority regardless of the industry of the business. This is because financing is a critically crucial element of a business. The categorization of financial risks in business is in four. That is market risk, liquidity risk, credit risk, and operational risk. Market risk arises from the movement of financial instruments in the market. This includes factors such as a shift in interest rates. Therefore, consideration of financial risks during primary target market selection is crucial.
the financial risks arising in business operations
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