Business Plan Market Analysis 3

Question 1

What is a value proposition in the context of market analysis?

Accepted Answer

A clear statement of the unique benefit a product offers to customers

Answer

A value proposition clearly states the unique benefit or solution a product/service offers to its target customers, differentiating it from competitors.

Question 2

What does a Porter's Five Forces analysis evaluate?

Accepted Answer

Competitive intensity and attractiveness of an industry

Answer

Porter's Five Forces evaluates an industry's competitive intensity by analyzing rivalry, threat of new entrants, buyer power, supplier power, and substitute threats.

Question 3

What is the difference between a niche market and a mass market?

Accepted Answer

Niche markets serve a narrow, specialized segment; mass markets target broad audiences

Answer

Niche markets serve a narrow, specialized customer segment with specific needs, while mass markets target broad, general audiences.

Question 4

What is customer acquisition cost (CAC)?

Accepted Answer

The total cost to acquire one new customer

Answer

Customer acquisition cost (CAC) is the total cost of sales and marketing efforts divided by the number of new customers acquired in a period.

Question 5

What does a market gap analysis identify?

Accepted Answer

Unmet customer needs or underserved segments in the market

Answer

A market gap analysis identifies unmet customer needs or underserved market segments that represent business opportunities.

Business Plan Practice Test

Business Plan Practice Test

Business Plan Market Analysis 3