When Procter & Gamble (P&G)introduced Liquid Tide to a New

question 165

Multiple Choice

When Procter & Gamble (P&G) introduced Liquid Tide to a new segment,consumers in the traditional powdered detergent segment switched to the liquid product.Rather than real sales growth,P&G simply experienced the shifting of existing customers to a new product.This exemplifies a drawback of multisegment targeting strategy called:

• A) demarketing
• B) selective perception
• C) undifferentiation
• D) cannibalization
• E) market repositioning

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Definitions:

Merchandise Inventories

Goods and products that a company holds for the purpose of resale to customers.

Sales Budget

An estimate of the expected sales revenue a company aims to achieve in a specific period, including both volume and value of sales.

Required Production

The quantity of goods that must be produced during a certain period to meet customer demand and inventory policies.

Budgeted Sales

An estimated amount of sales in units or dollars that a company plans to achieve during a certain period, often used for planning and operational purposes.