When Selecting Specific Target Markets, a Firm Should

question 56

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 organisation.
• 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.

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Definitions:

Inverse Demand Function

A mathematical function that expresses price as a function of quantity demanded, illustrating how the price necessary to sell a given quantity changes.

Price

The amount of money required to purchase a good or service, often determined by supply and demand dynamics in the market.

Income

Funds accumulated over time from work or investing efforts, usually received systematically.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to their level of satisfaction or happiness.