Which of the Following Statements Concerning a Company's Target Market

question 106

Multiple Choice

Which of the following statements concerning a company's target market is false?

• A)Marketing experts contend that the greatest marketing mistake small companies make is failing to clearly define the target market to be served.
• B)A "shotgun approach" to marketing (trying to appeal to everyone rather than to only a small market segment)is the most effective way to compete with large companies and their bigger marketing budgets.
• C)Small companies are usually better suited to pinpointing target markets that their larger rivals overlook or consider too small to be attractive.
• D)Most successful small businesses have well-defined portraits of the customers they are trying to attract.

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Definitions:

Credit Basis

The terms and conditions under which credit is extended by a lender to a borrower, including repayment schedules and interest rates.

Operating Expense

Expenses incurred during the normal operation of a business, excluding costs related to production or direct services.

Allowance for Doubtful Accounts

A contra-asset account that estimates the amount of receivables that may not be collectible.

Accounts Receivable

Funds that are owed to a company by customers for goods or services delivered or used but not yet paid for.