STEP Market Analysis & Trends

Question 1

What is the primary purpose of market analysis?

Accepted Answer

To identify opportunities, threats, and inform strategic positioning

Answer

To copy competitor strategies

Answer

To set prices equal to competitors

Answer

To justify existing business practices

Question 2

Which factor is most important when evaluating market trends?

Accepted Answer

The sustainability and direction of the trend over time

Answer

Short-term fluctuations in demand

Answer

Competitor reactions to the trend

Answer

Media coverage of the trend

Question 3

How should competitive intelligence be gathered ethically?

Accepted Answer

Through publicly available sources, industry events, and market research

Answer

By hiring competitor employees to share secrets

Answer

Through unauthorized access to competitor systems

Answer

By misrepresenting identity to obtain information

Question 4

What is a SWOT analysis used for?

Accepted Answer

Evaluating Strengths, Weaknesses, Opportunities, and Threats for strategic planning

Answer

Analyzing financial statements

Answer

Measuring customer satisfaction

Answer

Setting employee performance goals

Question 5

Why is customer segmentation important for market strategy?

Accepted Answer

It enables targeted approaches that address specific needs of different groups

Answer

It reduces the total addressable market

Answer

It is only useful for large companies

Answer

It eliminates the need for market research

Question 6

What role do economic indicators play in market analysis?

Accepted Answer

They provide context for understanding market conditions and predicting changes

Answer

They only affect government-related industries

Answer

They are too broad to be useful for individual businesses

Answer

They replace the need for company-specific analysis