Question

What criteria are used to select target markets? (Select all that apply)

A) Geographic location
B) Demographics
C) Psychographics
D) Market trends
E) Competition analysis

Answer 1

The criteria used to select target markets include geographic location, demographics, psychographics, market trends, and competition analysis.

Step-by-step explanation:

The criteria used to select target markets include:

1. Geographic location: This involves considering the physical location of the target market and its impact on the market potential. For example, a clothing company may choose to focus on regions with colder climates for their winter collection.
2. Demographics: This refers to the characteristics of the population in the target market, such as age, gender, income, and education. Understanding demographics helps in tailoring products or services to appeal to specific groups of customers.
3. Psychographics: Psychographics involves understanding the psychological and lifestyle characteristics of the target market. This can include values, interests, attitudes, and opinions. For instance, a fitness brand may target individuals with a specific interest in health and wellness.
4. Market trends: Examining market trends helps in identifying emerging opportunities or potential threats in the target market. This can include shifts in consumer preferences, technological advancements, or changes in industry regulations.
5. Competition analysis: Analyzing the competition helps in understanding the competitive landscape of the target market. This includes studying competitors' market share, pricing strategies, product offerings, and marketing tactics.