While Segmenting a Market, the Marketer of a Tobacco and Alcoholic

question 108

Multiple Choice

While segmenting a market, the marketer of a tobacco and alcoholic beverages company should always ask the ethical question of whether the firm:

• A)wants to include a commitment to ethics in its mission statement.
• B)should relocate its production to another country.
• C)should target this market with this product.
• D)and its actions are having a negative impact on any stakeholder group.
• E)is prepared to support the development of an ethical climate.

---

Definitions:

Payback Period

The duration it takes for an investment to generate enough cash flow to recover its initial cost.

Average Accounting Returns

A financial ratio that measures a firm's average profitability relative to its investment, typically calculated as net income divided by average book value of investment.

Project

A systematically planned group of tasks that are interdependent, meant to be executed within a fixed timeframe whilst respecting certain financial and additional limits.

Mutually Exclusive Projects

Projects in which the acceptance of one proposal means the others cannot be pursued, requiring a choice to be made.