Several Conditions Must Exist for Market Segmentation to Be Successful

question 93

Multiple Choice

Several conditions must exist for market segmentation to be successful.These conditions include all of the following except:

• A)the total market should be divided so that segments can be compared on sales potential, costs and profits.
• B)customers' needs for a product must be homogeneous.
• C)a company must be able to reach the chosen segment with a particular marketing mix.
• D)segments must be identifiable and divisible.
• E)at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

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Definitions:

Private Saving

The portion of households' disposable incomes that is not spent on consumption but saved for future use.

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or capital flow.

Households

Economic units consisting of all individuals who occupy a home, which participate in economic decisions.

Loanable Funds

A term in economics referring to the market where savers supply funds for loans to borrowers, influenced by interest rates.