Market Segmentation Is

question 26

Multiple Choice

Market segmentation is:

• A)more useful to consumer goods marketers than to business marketers.
• B)of little value to business marketers that concentrate on the governmental and institutional sectors of the organizational market.
• C)difficult to apply in the business market because groups, not individuals, make many purchasing decisions.
• D)a useful tool for both business and consumer goods marketers.
• E)inappropriate for low market share firms.

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Definitions:

Simulated Test Markets

A marketing technique where consumer reaction to a product is tested in a simulated environment prior to its actual launch.

Standard Test Markets

Controlled market areas where new products or marketing campaigns are tested before a nationwide or international launch.

Cannibalization

A business phenomenon where a company’s new product eats into the sales of its existing products.

Business Analysis

The practice of identifying business needs and determining solutions to business problems through analysis and modification of processes.