What is the purpose of calculating market size for a business?

• To determine the number of employees needed
• To assess the feasibility of entering a market
• To set advertising budgets
• To identify competitors' weaknesses

On the Boston Matrix, which term usually refers to a product in the introduction phase of its lifecycle?

• Question mark
• Star
• Dog
• Cash cow

On the Boston Matrix, which term refers to a product which has low growth and a low market share?

• Question mark
• Star
• Dog
• Cash cow

What is the main goal of market segmentation?

• To increase overall market size
• To target the entire market with a standardised product
• To identify and meet the unique needs of different customer groups
• To reduce competition in the market

If a market grows from £10 million to £15 million, what is the percentage increase in market size?

• 25%
• 33.33%
• 50%
• 150%

When setting a price for its products, which of the following is the most important consideration?

• The cost of the rent it must pay
• Providing good value for the target customer
• Complying with the Weights and Measures Act (1985)
• Increasing its sales

Demographic segmentation involves dividing the market based on:

• Personality traits
• Age, gender, income, and other demographic factors
• Buying behaviour
• Geographic location

If a company sells 500,000 units of a product at £20 each, what is the market size in terms of revenue?

• £10 million
• £1 million
• £5 million
• £20 million

Which promotional method uses short-term discounts to encourage customers to purchase a product?

• Public relations
• Sales promotions
• Advertising
• Sponsorship

Which of the following is not a definition of a "market size"?

• The number of potential customers
• The number of sellers of a particular product or service
• The total value of products in a market
• The profit a business will make by selling its products or services