Business Plan Market Analysis 2 — Questions and Answers
Question 1: What is a customer persona in market research?
- A legal entity representing customers
- A fictional profile representing a typical target customer (Correct answer)
- A financial model for customer lifetime value
- A competitive pricing strategy
Correct answer: A fictional profile representing a typical target customer
A customer persona is a semi-fictional profile that represents a typical target customer, including demographics, goals, and pain points.
Question 2: What does SOM stand for in market analysis?
- Share of Market
- Standard Operating Metrics
- Serviceable Obtainable Market (Correct answer)
- Sales Opportunity Mapping
Correct answer: Serviceable Obtainable Market
SOM stands for Serviceable Obtainable Market — the realistic share of SAM a business can capture in the near term.
Question 3: What is primary market research?
- Research from published industry reports
- Original data collected directly from potential customers (Correct answer)
- Historical financial data
- Competitor annual reports
Correct answer: Original data collected directly from potential customers
Primary market research involves collecting original data directly from potential customers through surveys, interviews, or focus groups.
Question 4: What is the purpose of a PESTLE analysis?
- To analyze profit and loss
- To examine Political, Economic, Social, Technological, Legal, and Environmental factors (Correct answer)
- To calculate product pricing
- To determine employee performance
Correct answer: To examine Political, Economic, Social, Technological, Legal, and Environmental factors
A PESTLE analysis examines external macro-environmental factors — Political, Economic, Social, Technological, Legal, and Environmental — that affect a business.
Question 5: What does market penetration rate measure?
- How deep a company drills for raw materials
- The percentage of a target market that has purchased the product (Correct answer)
- Total advertising spend
- Annual revenue growth rate
Correct answer: The percentage of a target market that has purchased the product
Market penetration rate measures the percentage of a target market that has purchased a company's product or service.
Question 6: What is secondary market research?
- Research conducted after product launch
- Data gathered from existing sources like industry reports and government statistics (Correct answer)
- One-on-one customer interviews
- Lab testing of products
Correct answer: Data gathered from existing sources like industry reports and government statistics
Secondary market research uses existing data from sources such as industry reports, government statistics, and academic studies.
Business Plan Market Analysis 2
What is a customer persona in market research?