Five General Criteria Are Often Used to Select Target Segments

question 81

Multiple Choice

Five general criteria are often used to select target segments.They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment;and __________.

• A)compatibility with the organization's objectives and resources
• B)potential of a marketing action to reach a segment
• C)similarity of needs of potential buyers within a segment
• D)difference of needs of buyers among segments
• E)potential for increased profit

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Definitions:

Yield-to-Maturity

The total anticipated return on a bond if held until it matures, accounting for its current market price, face value, interest payments, and time to maturity.

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed.

WACC

Weighted Average Cost of Capital; a calculation of a company's capital cost that weighs each category of capital proportionately.

Marginal Tax Rate

The marginal tax rate is the rate of tax applied to the next dollar of taxable income, indicating the percentage of tax an individual or corporation pays on an additional dollar of income.