Who are considered external customers?

External customers refer to individuals or groups who purchase products or services from a business but are not directly involved in its operations. This definition encompasses end consumers as well as businesses that buy goods or services for their own use or resale.

In the context of marketing principles, understanding external customers is crucial for developing effective marketing strategies, as they are the primary source of revenue for a company. Their needs, preferences, and behaviors dictate how businesses should position their products and services in the market.

While employees involved in production are critical to a company's operations, they are considered internal customers because they are part of the organization. Organizational stakeholders, such as investors or board members, have a vested interest in the company's performance but do not directly purchase products or services. Market analysts, similarly, study and interpret market trends and consumer behavior but do not directly engage with the products or services the company offers.

Therefore, identifying external customers, such as individuals purchasing products or services, is central to marketing strategy, making this choice the correct answer.