Several Conditions Must Exist for Market Segmentation to Be Successful

question 42

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 the product must be homogeneous.
• C) the 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:

Bad Debts Recovered

Money that was previously written off as unrecoverable but has since been collected.

Income Statement

A financial document summarizing the revenues, costs, and expenses incurred during a specified period, typically a fiscal quarter or year.

Income Statement Approach

A method for estimating bad debts expense that focuses on income statement relationships, often involving a percentage of sales or accounts receivable.

Balance Sheet Approach

A method in accounting that focuses on valuing all assets and liabilities listed on the balance sheet at their current market values to provide a snapshot of a company's financial condition at a specific point in time.