The First Step in Selecting a Target Market Is to Study

question 11

Multiple Choice

The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called ________.

• A) market positioning
• B) market splitting
• C) market targeting
• D) market subdividing
• E) market segmentation

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Definitions:

Accounting Equation

Represents the foundational principle of double-entry bookkeeping, stating that assets equal liabilities plus equity, serving as the basis for all accounting systems.

Liabilities

Financial obligations or debts that a company owes to others, which are recorded on the right side of the balance sheet.

Equity

Equity represents an owner's share in the assets of a company, after all liabilities have been subtracted.

Accounts Receivable

The balance of money owed to a company by its customers for goods or services delivered or used but not yet paid for.