Author Question: Describe the two broad targeting approaches in business, and give an example of ... (Read 109 times)

theo · **on:** Jul 14, 2018

Describe the two broad targeting approaches in business, and give an example of each.

Question 2

List any two depository and nondepository institutions and describe their differences.

Question 3

In the past, the SBA could guarantee loans up to 5 million.

Indicate whether the statement is true or false

choc0chan · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

The undifferentiated approach is when a company designs a single marketing mix and directs it at the entire market. Staple items like salt and sugar fall in this category. The market segmentation approach is when the firm directs its attention and marketing to a particular portion, or segment, of the total market. Categorizing boats as sailboats, fishing boats, or speedboats is an example.

Answer to Question 2

Depository institutions are financial intermediaries that obtain funds by accepting checking or savings deposits (or both) from individuals, businesses, and other institutions and then lend these funds to borrowers.
Commercial banks are the most common depository institutions. When you make a deposit into a checking or savings account at your bank, you are providing funds that the bank can use for making loans to businesses, governments, or other individuals.

Savings and loan associations (also called S&Ls or thrifts) traditionally accepted only savings account deposits and used them to make mortgage loans. During the early 1980s, regulations on S&Ls were relaxed, allowing them to accept checking account deposits and make a broader range of loans. Still, the major focus of the savings and loan industry remains mortgage loans.

Nondepository Financial Institutions: In addition to banks and other depository institutions, a number of other financial intermediaries play important roles in financial markets.

Securities brokers act as agents for investors who want to buy or sell financial securities, such as corporate stocks or bonds. In addition to handling the trades, many brokers provide their clients with additional services such as financial planning and market research. Brokers are compensated by charging fees and commissions for the services they provide.

Securities dealers participate directly in securities markets, buying and selling stocks and bonds for their own account. They earn a profit by selling securities for higher prices than they paid to purchase them. (The difference between the prices at which they buy and sell a security is called the spread.)

Answer to Question 3

False