What Are Target Markets? Explain the Role That Target Markets

question 7

Essay

What are target markets? Explain the role that target markets play in market segmentation.

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Definitions:

Time Value

The concept that money available now is worth more than the identical sum in the future due to its potential earning capacity.

Project's Cash Flows

The expected movement of cash associated specifically with a project, including both inflows and outflows.

Shareholders Wealth

The total value of an investment in a company, determined by the market price of the company's shares, which shareholders seek to maximize through investment decisions.

Payback Policy

A company's strategy for determining the timeframe within which an investment recovers its initial cost out of the cash inflows that it generates.