Business test Flashcards
Percentage change
New value - old value / old value x 100
What are the key points of % change
Can measure the change of value over time, a positive % change indicates growth while negative can indicate decline
Growth rate formula
Growth rate = Change in value / original value x 100
What are the applications of calculating growth
Commonly used to measure business performance metrics such as market share, sales or profits. Also compares performance of the same period across years
Definition of target market
A target market is the specific group of customers a business aims to serve
Factors to consider when choosing target market
Demographic, Geographic, Psychographics, Behavioural
Why is choosing a target market important
Helps business focus resources and increases efficiency
Segmentation definition
Dividing a market into more define categories based on characteristics
Advantages of segmentation
Allows for personalized marketing, better meets customer needs
Limitations of segmentation
Time consuming and costly
Definition of marketing mix
A combination of factors that influence customers to buy a product or service
7ps
Product, Price, Place, Promotion, People, Process, Physical Evidence
