quesion1,

Market segmentation is important.

The power of knowing your niche and understanding what your target market wants cannot be overstated.

Too many companies start a business with the marketing objective of appealing to the masses, when they should start by learning about their market and segmenting it so that segments have five characteristics: 1) Meaningful; 2) Mutually exclusive; 3) Measurable; 4) Sustainable; and, 5) Actionable.

From a financial resource perspective, explain why it is important to segment the target market. (1 point)

Give one example for four characteristics, which relates to your or your group's business plan (4 points). Remember to state your business idea.

Question2,

Analyse components of Contributon Margin for MarCo Corporation and PoLo Corporation for the year ended 2019.

MarCo Corporation Contribution-based Income Analysis for 2027		PoLo Corporation Contribution-based Income Analysis for 2027
Sales (5,000 x $1,000) $5,000,000 100%		Sales (5,000 x $1,000) $5,000,000 100%
Variable Costs (5,000 x $900) 4,500,000 90%		Variable Costs (5,000 x $400) 2,000,000 40%
Contribution Margin $ 500,000 10%		Contribution Margin $3,000,000 60%
Fixed Costs $ 500,000		Fixed Costs $3,000,000
Net Income $ -- 0 --		Net Income $ -- 0 --

Congratulations! The business idea that you and your group had developed in 2020 for Small Business Mangement at GBC took off like wildfire. You've since sold your shares for $1.2 billion and you're now a part-time Angel Investor. You're comparing two proposals that are seeking funding of the same amount to expand their businesses. Based on the foregoing information, in which business would you invest (1 point)? Explain your rationale, ensuring that it includes a brief discussion about the components of contribution margin of both companies (4 points).