164 Marketing Dynamics Copyright Goodheart-Willcox Co., Inc. Review Your Knowledge 1. Explain how the concept of a market applies to marketing products. 2. Differentiate between mass marketing and target marketing. 3. Explain the concept of market segmentation. 4. Define variables used for market segmentation. 5. Explain the importance of a customer profile. 6. Identify types of competition that a business encounters. 7. Differentiate between price and nonprice competition. 8. Identify the components of a market analysis. 9. Define product positioning. g 10. Discuss steps taken to create a sales analysis. Apply Your Knowledge 1. In an earlier chapter, you identified the business for which you are creating a marketing plan. Describe the mass market for the products sold by this business. 2. Identify a potential niche market for the products you will be marketing. 3. Describe the target market for the marketing plan you are writing. Which demographic, geographic, psychographic, and behavioral factors will you use to identify the target market? 4. Summarize the wants or needs fulfilled by the products you are marketing. 5. List three direct competitors and three indirect competitors that you will evaluate for your marketing plan. 6. List and describe three competitive advantages of the products you will market. 7. Describe nonprice competition factors for the products included in your marketing plan. 8. Write a unique selling proposition (USP) for the products included in your marketing plan. 9. List three strengths and three weaknesses of the products you will market. 10. Create a competitive analysis by evaluating the competition you will encounter in the market. Apply Your Math Skills The 80/20 rule and the market share formula can both be helpful when evaluating the marketing opportunities for a business. Apply your math skills to solve the following problems. 1. Jason’s Italian Restaurant recently ran a promotion to gather customer data. After the promotion, Jason compiled a database of current restaurant customers with 1,200 entries. Following the 80/20 rule, how many of his customers are responsible for 80 percent of the restaurant’s sales? 2. The total market size for Italian restaurants in a suburban city is $5,400,000. Jason’s Italian Restaurant makes $945,000 per year in sales. Use the market share formula to calculate the market share of this restaurant. Communication Skills Reading After you read this chapter, analyze how the author unfolds a series of ideas, including the order in which the points are made, how they are introduced and developed, and the connections drawn between them. Writing Write a narrative to develop the steps you would take in identifying a target market. Focus on your writing style and tone while selecting the right words to express your thoughts. Use well-chosen details and structure the events in a logical sequence. Speaking Many situations will require you to persuade a listener. When you persuade, you convince a person to take a course of action or adopt a viewpoint you propose. Marketing College and Career Readiness