Four P's: Place

Question 1

A group of potential customers with purchasing power and unsatisfied needs

Answer 1

Market

Question 2

Group of people for which a business maintains a marketing mix
-Specifically designed to satisfy the needs of the group

Answer 2

Target market

Question 3

A study used by a business to determine where the potential customers are located

Answer 3

Market survey

Question 4

1. New market info gathered by the firm
2. Previously compiled data; census

Answer 4

1. Primary data
2. Secondary data

Question 5

Division of a market into several smaller groups each with similar needs

Answer 5

Market segmentation

Question 6

Market segmentation variables:
Characteristic that describes customers, purchasing power, and consumption powers

Answer 6

Demographic variables

Question 7

Market segmentation variables:
Characteristics distinguished by benefits sought by customers

Answer 7

Benefit variables

Question 8

What are the three types of targeting variables?
1. Total market as target market. Service/ product is for an entire market
2. Recognizes different preferences, makes products for all
3. Recognizes different preferences, focuses on one

Answer 8

1. Unsegmented/ undifferentiated
2. Multi segmented/ differentiated
3. Single segment/ concentrated

Question 9

Traditional physical facility from which businesses have historically operated

Answer 9

Brick and morter facility

Question 10

Formal codification of land use policies by a unit of local government
-Established permit use
-Distinguished land uses which may be incompatible

Answer 10

Zoning ordinances

Question 11

What are some factors to consider when selecting a good location?

Answer 11

-Neighbor mix
-Security and safety
-Owner/ entrepreneur preference
-Services: utilities and public works (resources availability)
-Past tenant’s fate (customer accessibility)
-Location of life cycle stage

Question 12

What are the life cycle stages

Answer 12

1. Developing
2. Stagnant
3. Declining

Question 13

What are things to consider when choosing a location in terms of customer accesibility?

Answer 13

-How far will a family go?
-Internal and external traffic flow
-Room for expansion
-Environmental conditions
-Parking facilities
-Equipment and fixture requirements

Question 14

Facility that provides shared space, services, management assistance to new businesses

Answer 14

Business incubators