What Is the First Step in Segmenting a Market

question 179

Multiple Choice

What is the first step in segmenting a market?

• A) Set the segmentation goals
• B) Choose a basis or bases for segmenting the market
• C) Select a market or product category for study
• D) Profile and analyze segments
• E) Select target markets

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Inventory Turnover

A measure of the liquidity of inventory; computed by dividing cost of goods sold by average inventory.

Liquidity

The ability of an asset to be quickly converted into cash or the ability of a company to meet its short-term financial obligations.

Federal Government

The national government of a federated state, which holds the authority to govern at a national level, possessing powers typically outlined in a constitution.