What Is the Purpose of Market Segmentation

question 120

Multiple Choice

What is the purpose of market segmentation?

• A)reduce the market to a specific size that the firm can handle
• B)divide the market into equal size and profit regions for sales territories
• C)enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups
• D)develop a generalized definition of the market as a whole

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Definitions:

Projected Cash Flows

Estimates of the amount of money expected to flow in and out of a business over a future period.

Time Value of Money

The principle that a dollar received today is worth more than a dollar received in the future, due to its potential earning capacity.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or investor expects to achieve.