Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which part of a business plan provides details about the customer demographics?

1. Market analysis

2. Executive summary

3. Financial section

4. Management section

The correct answer is: Market analysis

The market analysis is the section of a business plan that provides in-depth details about the customer demographics. This part focuses on understanding the target market, including the characteristics, behaviors, and needs of customers that the business aims to serve. It often includes information such as age, income levels, education, geographic location, and buying habits, which are crucial for developing effective marketing strategies and making informed decisions about product offerings. The executive summary serves as an overview of the entire business plan, summarizing the business's purpose and objectives but does not delve into specific demographic details. The financial section concentrates on financial projections, funding requirements, and cash flow analysis instead of customer characteristics. The management section outlines the organizational structure and key personnel but does not provide information on the target demographic or customer-related insights.