Chapter 2 Marketing Plan 25 Copyright Goodheart-Willcox Co., Inc. • Economic factors affect the ability of s consumers to purchase products, as well as the cost of doing business. • Social factors are the cultural aspects within s a business environment and the personal qualities of its customers, such as age, gender, income, ethnicity, education level, occupation, marital status, and family size. • Technological factors affect the ease with s which a business can operate within a market or region, as well as the level of productivity possible once the business is in operation. A PEST analysis can be presented in a format similar to the one in Figure 2-4. LO 2.1-3 Target Market Research must be completed in order to accu- rately define the customer. A target market is the t specific group of customers at which a company aims its products and services. These are the people whose wants and needs are fulfilled by the products a business offers. They are also the people most likely to buy the goods or services. Target markets have four characteristics: • clearly defined wants and needs the business can meet • money to buy the product • willingness and ability to buy the product and • enough customers to be profitable. Depending on the products a company offers, it may be wise to segment the target market. The process of dividing a large market into smaller groups is called market segmentation. A market segment is the smaller group of people, businesses, or PEST Analysis Political • Changes in state and federal government leadership • Trade regulations • Employment laws and regulations Economic • Stability of the economy • Interest rates and availability of financing • Costs of business resources Social • Lifestyle trends • Population growth rates • Cultural influences Technological • Up-to-date communication technology infrastructure • Market expectations of technology integration • Emerging technologies Goodheart-Willcox Publisher Figure 2-4 A PEST analysis is an evaluation of the political, economic, social, and technological factors in a certain market or geographic region that may impact the success of a business. Professional Image An image is the perception others have of a person based on that person’s dress, behavior, and speech. It is what people remember about a person from business, professional, and even social interactions. A professional image is the image an individual projects in the professional world. A positive professional image projects hon- esty, skill, courtesy, and respect for others. Employability Skills