What is the main reason for selecting a target customer group in an enterprise?
Answer and explanation
Correct answer: To design the product and message for the right people
Customers differ in needs, purchasing power, location, behaviour, and preferences. Selecting a target group helps the entrepreneur tailor the product, price, distribution, and promotional message to the people most likely to value it. It does not mean ignoring the whole market; it makes planning more focused and effective, so A is correct.
Frequently asked questions
What is the correct answer to this question?
To design the product and message for the right people
Why is this the correct answer?
Customers differ in needs, purchasing power, location, behaviour, and preferences. Selecting a target group helps the entrepreneur tailor the product, price, distribution, and promotional message to the people most likely to value it. It does not mean ignoring the whole market; it makes planning more focused and effective, so A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
