The First Step in Selecting a Target Market Is to Study

question 11

Multiple Choice

The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called ________.

• A) market positioning
• B) market splitting
• C) market targeting
• D) market subdividing
• E) market segmentation

Recognize the impact of regulatory changes on industry competition and pricing.

Understand the conditions for long-run economic profit or loss in price-taker markets.

Assess the minimum price a firm would need to charge to cover its average total cost in the long run.

Distinguish between price searchers and price takers.

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Definitions:

Quantifiable

Capable of being measured or expressed as a numerical value.

Evaluation Interview

A meeting aimed at discussing an employee's job performance, objectives, and development needs based on a systematic assessment.

Developmental Purposes

Actions or strategies intended to facilitate growth, progress, or improvement in either personal or organizational contexts.

Performance Standards

Criteria established to assess how well a task or job is performed, serving as benchmarks for acceptable performance levels.