When Selecting Specific Target Markets, a Firm Should

question 194

Multiple Choice

When selecting specific target markets, a firm should

• A) revert to an undifferentiated approach if the market is deemed heterogeneous.
• B) choose the segments most in line with the firm's objectives and long-term growth.
• C) choose all segments that are determined to be profitable for the organization.
• D) choose the minimum number of segments necessary to achieve company sales potential.
• E) pick the segments with the best sales forecasts for the upcoming period of time.

---

Definitions:

External Financing

Funds raised from sources outside the company, such as investors or lenders.

Sustainable Rate

The sustainable rate often refers to the growth rate a company can maintain without needing to increase financial leverage or equity financing.

Internal Rate

The interest rate at which the net present value of all the cash flows from an investment or project is zero.