Government policy
The government can affect opportunities for businesses through several direct and indirect ways. Government policy to restrict the sale of certain items such as tobacco products will influence what a business can produce. In other ways, government policy can result in changes in the economy. Lowering interest rates may cause consumers to spend more money and make larger purchases, resulting in increased sales for some businesses. Societal attitudes Societal attitudes reflect how groups think or feel about something. These collective feelings toward products can influence business decisions and opportunities. For instance, as awareness of climate change grows, consumers are increasingly mindful of their purchases. Society now values ‘greener’ products that are organic and locally grown, reflecting environmental consciousness.
FIGURE4 Competing supermarkets Coles and Woolworths are often situated close together and are trying to attract the same customers.
SkillBuilder discussion Communicating 1. Describe the different reasons why some people check labels on food items before they buy. 2. What would you
FIGURE5 Society’s attitudes about products may change over time, depending on what information they have.
consider to be a societal trend when it comes to food or drink items?
Trends of the target market To identify its target market, a business segments or splits the market up based on demographics, geography, behaviour, and psychographics. For example, a car-product business may target 30−50-year-olds in suburban areas with limited public transport. A gourmet sandwich business might focus on 25–50-year-olds working in the city who prefer healthy lunches. Defining a target market helps determine product demand and profitability.
650 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition
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