Before Using the Product Differentiation and Market Segmentation Strategies,marketers Should

question 204

Multiple Choice

Before using the product differentiation and market segmentation strategies,marketers should consider the potential for cannibalization,asking the question

• A)"Will our new products steal customers or sales from our older ones?"
• B)"Will the products compete head-to-head with those of a competitor?"
• C)"Can this action successfully draw customers away from competitors?"
• D)"Are there enough similarities within the market segment to warrant such high costs?"
• E)"Will this action eliminate the need for individualized advertising and promotion?"

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Definitions:

NPV

Net Present Value; a financial metric used to assess the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

IRR

Internal Rate of Return; the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used in capital budgeting to measure the profitability of an investment.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting liquidity.

Replacement Proposal

A plan to replace an existing asset or system with a new one, often evaluated based on cost, efficiency, and potential benefits.