Explain the Steps Involved in Segmenting a Market

question 70

Essay

Explain the steps involved in segmenting a market.

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Definitions:

Accounting Beta Model

A method used in finance to estimate the beta of a company's stock based on its accounting ratios, as opposed to market-based measures.

Return on Equity

A measure of a corporation's profitability, calculated by dividing net income by shareholder equity, indicating how effectively company management is using investments to generate earnings growth.

Stock Market Index

A statistical measure that shows changes in the stock market by tracking a selected set of stocks to represent a particular market or sector.

Project Cash Flows

Net amounts of cash that are to be received or paid out over the duration of a project, determining its profitability and feasibility.