Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to usethese funds to start a student accommodation business. In order to start this business, Lorrainewould need approximately R1 million, funds are needed for building the students accommodationapartments and to register with various regulatory bodies. She has to source additional funding inorder to realise this dream. In the business plan, Lorraine has outlined the following:• Accommodation will be offered ONLY to students in Cape Town, Johannesburg,Mpumalanga and Polokwane.• ONLY females will be approved to reside in these houses, between the age of 18 - 35.• Marketing of the business will be done on community Radio stations only at the fourmentioned cities.• It is going to be a family business, Friends and relatives are in support of the idea but arenot able to support the business financially There are three types of Market coverage. Explain the type of market coverageapplicable to Lorraine’s business.
Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to use
these funds to start a student accommodation business. In order to start this business, Lorraine
would need approximately R1 million, funds are needed for building the students accommodation
apartments and to register with various regulatory bodies. She has to source additional funding in
order to realise this dream. In the business plan, Lorraine has outlined the following:
• Accommodation will be offered ONLY to students in Cape Town, Johannesburg,
Mpumalanga and Polokwane.
• ONLY females will be approved to reside in these houses, between the age of 18 - 35.
• Marketing of the business will be done on community Radio stations only at the four
mentioned cities.
• It is going to be a family business, Friends and relatives are in support of the idea but are
not able to support the business financially
There are three types of Market coverage. Explain the type of market coverage
applicable to Lorraine’s business.
Market coverage is known to be the strategies that are used to cover the market with all of their promotion. Promotional strategies help the companies to cover the market.
Many factors are taken into consideration like economic factors, culture, buyer behaviour etc. Each kind of market coverage serves different purpose and idea.
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