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Summary:
A Small Business Owner has approached you. She wants to open a bakery in downtown Sydney, but is unsure how to proceed. She understands that the bakery cannot be all things to all people, and has some knowledge of the concept of segmenting the market and determining a target market.
Help her!
Explain to our business owner as to how she would segment the market. Define the target market for the business. What are the target market demographics, lifestyle characteristics, purchase characteristics, and purchase innovations?
What are the products and where are they on the product life cycle? What differentiates the bakery in the marketplace? (The differentiating factor can be different than someone else's.)
Explain how the 4 p's will work for her. Explain how the product price is set after you make a decision about the product, promotion and place.
You have a marketing budget of $5000 for the year. Get a mock budget for advertising. What can you do that will cost money and what can you do that takes time, but doesn't cost anything. Relate that to the target demographic that you have chosen (how do they access information)? Provide the owner with some metrics for success for the allocation of the marketing budget.
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