Which of the following is likely to occur if entrepreneurs fail to define a radius from which they believe their business will draw a majority of its customers?
A)It will distort the entrepreneur's advertising efforts.
B)It will dramatically reduce the entrepreneur's costs.
C)It will be easier for the entrepreneur to identify direct and indirect competition.
D)It will force the entrepreneur to forego business unnecessarily.

Question

Quizplus · Accepted Answer

If entrepreneurs fail to define a radius from which they believe their business will draw a majority of its customers, it will distort the entrepreneur's advertising efforts. Without a defined radius, the entrepreneur may overspend on advertising to an audience that will never become customers or underspend on advertising to those within the target radius. This can result in wasted resources and ineffective advertising campaigns.

Which of the Following Is Likely to Occur If Entrepreneurs