Maya Has a Great Idea for a New Shoe Store

question 154

Multiple Choice

Maya has a great idea for a new shoe store. When she first conceived of the idea, she believed her target market would be the entire shoe market. However, as she learned more about marketing, she realized that different types of consumers were looking for different types of footwear. She also learned that some segments of the population would be much more profitable than others. Maya has used a number of variables to divide the market into different groups, including those that use shoes as a status symbol, those that use shoes for sports, and those who wear shoes simply because they are comfortable. What stage of the target market selection process is Maya currently at?

• A) Step 1: Identify the appropriate targeting strategy
• B) Step 2: Determine which segmentation variables to use
• C) Step 3: Develop market segment profiles
• D) Step 4: Evaluate relevant market segments
• E) Step 5: Select specific target markets

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Definitions:

Treasury Shares

Shares that were issued and then repurchased by the issuer, reducing the quantity of outstanding stock.

Outstanding Shares

The total number of shares of a company's stock currently held by all its shareholders, including share blocks and restricted shares.

Issued Shares

The total number of shares that have been sold to and are held by shareholders.

Paid-In Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares plus any amount paid in excess.