Estimating the Cost of Entering a Market and Focusing on a Specific

question 148

Multiple Choice

Estimating the cost of entering a market and focusing on a specific target segment is important because

• A) cost estimates are crucial to estimating sales potential accurately.
• B) higher costs will keep other potential competitors from entering that particular segment.
• C) customers are more likely to be attracted to marketers that invest heavily in the target segment.
• D) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.
• E) higher cost generally ensures long-term success.

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Definitions:

Academic Record

The formal documentation of a student's educational performance and achievements.

Average Cost

The total cost divided by the number of goods or services produced or acquired.

Shares

Ownership stakes in a company or financial asset that are divided equally among shareholders, allowing them to receive proportional shares of any declared profits through dividends.

Gross Monthly Earnings

The total amount of income earned in a month before any deductions such as taxes or retirement contributions.