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6.1 Define the term target market - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Question 6
6.1 Define the term target market. A group of people who want to purchase your product or service and are willing to pay the price that you are charging for it. 6.... show full transcript
Worked Solution & Example Answer:6.1 Define the term target market - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Step 1
Step 2
Name TWO distribution methods that an entrepreneur can use to sell his/her products.
Answer
- Direct selling involves reaching customers directly through platforms such as markets or online sales.
- Indirect selling involves using middlemen or distributors to reach consumers, allowing more extensive market coverage.
Step 3
Suggest FOUR ways in which a new entrepreneur can build good customer relations to ensure the success of his/her business.
Answer
- Understand and respond to the needs and expectations of the customers, ensuring satisfaction.
- Treat customers with respect and importance, making them feel valued.
- Provide clear and accurate information about products to foster trust.
- Maintain open lines of communication to address and resolve any queries or concerns quickly.
Step 4
Explain the importance of adhering to product specifications.
Answer
Adhering to product specifications ensures that each product meets the expected standards in quality, size, and appearance. This consistency helps customers feel secure in their purchases, as they know they will receive what they anticipate. Additionally, by reducing returns and failures, businesses can enhance profitability and customer satisfaction.
Step 5
Discuss the following factors that Lebuhang considered when she selected Eggselent as her small-scale business:
Answer
(a) Availability of financial resources: Lebuhang secured funding through a personal loan and a grant from the National Youth Development Agency, which provided a solid financial foundation for her business.
(b) Availability of work space: She utilized a rent-free piece of land, which significantly cut operational costs and allowed her to focus resources on her business.
(c) Availability of raw materials: By sourcing eggs from local farmers, she ensured the sustainability of her supply chain and reduced transportation costs.
Step 6
Describe why Lebuhang is considered an environmentally and socially responsible entrepreneur.
Answer
Lebuhang prioritizes sustainability by using biodegradable and recyclable packaging for her eggs, reducing pollution and environmental waste. Furthermore, she donates unsold eggs to early childhood development centers, aiding community nourishment and supporting local development.
Step 7
Explain why it is likely that Eggselent will be a sustainable profitable business.
Answer
Eggselent's sustainable approach, combined with low overhead costs from rent-free operations and direct community engagement via product donations, positions it well for profitability. Additionally, by meeting community needs and prioritizing eco-friendliness, the business fosters customer loyalty, which is critical for long-term success.