Lionel Is Asked to Conduct an STP Analysis for His

question 85

Multiple Choice

Lionel is asked to conduct an STP analysis for his firm.The first step he should perform in this analysis is to

• A) develop a business mission statement.
• B) choose the best target markets.
• C) reposition existing segments.
• D) divide the marketplace into subgroups.
• E) conduct a SWOT analysis.

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Definitions:

Change in Demand

A shift in the demand curve, due either to changes in consumer preferences, income levels, prices of related goods, or other factors, affecting the quantity demanded at any given price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level, within a specific time frame.

Law of Supply

An economic principle stating that as the price of a good or service increases, the quantity supplied of that good or service also increases, and vice versa, all else being equal.

Law of Demand

A principle that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers.