One Way to Get Around the Difficulty of Full-Market Coverage

question 40

Multiple Choice

One way to get around the difficulty of full-market coverage in a country is to

• A) seek significant penetration in major population areas.
• B) avoid countries with multiple languages.
• C) assess countries in terms of market segments, not geographic segments.
• D) keep marketing efforts to highly developed areas.
• E) focus on the use of one channel.

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Definitions:

Common Fixed Expenses

Fixed costs that are not directly tied to the level of goods or services produced by the business, such as rent, utilities, and salaries of administrative staff.

Sales Territories

The division of a market or customer base into specific areas, each managed by a sales representative or team, to optimize sales and marketing efforts.

Segmented Income Statement

An income statement broken down into parts or segments, typically showing revenues, expenses, and profits for individual units, products, or departments within an organization.

Contribution Format

A way of presenting income statements where costs are separated into variable and fixed, and contribution margin is highlighted.