Which of the Following Statements About Target Markets Is Incorrect

question 5

Multiple Choice

Which of the following statements about target markets is incorrect?

• A) There is a distinct difference between a firm's industry and its target market.
• B) The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors.
• C) By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well.
• D) A target market is a place within a larger market segment that represents a narrower group of customers with similar needs.
• E) It's generally easier to find good information about a target market than an industry as a whole.

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Definitions:

Mutual Adjustment

A process of coordinating actions and decisions through informal communication and negotiation among parties.

Support Staff

Employees who provide administrative or technical support to an organization, enabling primary operations without being directly involved.

Formalization

The extent to which organizations use rules, procedures, and structured communication to govern behaviors and operations.

Centralization

The concentration of decision-making authority at higher levels within an organization.