NSC Consumer Studies Marketing: 6.1 Define the term target marke

Question

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.

6.2 Name TWO distribution methods that an entrepreneur can use to sell his/her products.

1. Direct selling/distributing/selling themselves.
2. Using a middleman/indirect selling.

6.3 Suggest FOUR ways in which a new entrepreneur can build good customer relations to ensure the success of his/her business.

1. By ensuring that the business meets the wants and needs of the customers.
2. By making customers feel important/treat customers with respect.
3. Ensure that they enjoy doing business with you.
4. By giving clear information about the product.

6.4 Explain the importance of adhering to product specifications.

To ensure that the product is always the same/consistent in terms of size/appearance/color and texture/quality.
Customers will always get what they expect/meet customers' expectations.
Customers will be satisfied/pleased, tell others about the product.
Product/business can be more successful/more profitable/not lose profit as there will be less failures/returns.

6.5 Read the case study below and answer the questions that follow.

EGGSELENT BUSINESS

After seeing how impoverished her community was, Lebuhang started an egg business on a small rent-free piece of land. She bought 12 trays of eggs and egg-laying chickens from a local farmer. She now sells freshly laid eggs and slaughtered chickens to the local community.

A friend lent her R2 000 and she received a grant worth R50 000 from the National Youth Development Agency which also provided her with a business mentoring opportunity. She built a bigger chicken house to accommodate at least 600 egg-laying chickens. She gives the community free chicken manure as fertiliser for community gardens.

Eggcellent now sells eggs to bakeries, bed and breakfast establishments and walk-in customers. She also promotes and sells her products online. The eggs are sold at an affordable price. She packages the eggs in biodegradable and recyclable material and encourages her customers to bring their own packaging. Every Friday she donates the unsold eggs to early childhood development centres in her community.

6.5.1 Discuss the following factors that Lebuhang considered when she selected Eggcellent as her small-scale business:
(a) Availability of financial resources.
(b) Availability of work space.
(c) Availability of raw materials.

6.5.2 Describe why Lebuhang is considered an environmentally and socially responsible entrepreneur.

6.5.3 Explain why it is likely that Eggcellent will be a sustainable profitable business.

6.1 Define the term target market - NSC Consumer Studies - Question 6 - 2023 - Paper 1

Worked Solution & Example Answer:6.1 Define the term target market - NSC Consumer Studies - Question 6 - 2023 - Paper 1

Define the term target market.

Name TWO distribution methods that an entrepreneur can use to sell his/her products.

Suggest FOUR ways in which a new entrepreneur can build good customer relations to ensure the success of his/her business.

Explain the importance of adhering to product specifications.

Discuss the following factors that Lebuhang considered when she selected Eggcellent as her small-scale business:

Describe why Lebuhang is considered an environmentally and socially responsible entrepreneur.

Explain why it is likely that Eggcellent will be a sustainable profitable business.

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