Market Segmentation Is a Two-Step Strategic Process,and the First Step

question 17

Multiple Choice

Market segmentation is a two-step strategic process,and the first step is to

• A) conduct advertising research that determines consumers' reactions to various ad campaigns.
• B) identify groups of people with certain shared characteristics within the broad product market.
• C) locate as many market niches as possible that will be profitable for the firm.
• D) develop place, time, service, and possession utility.
• E) determine which personal influences will have the appropriate effect on consumers.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of finished goods.

Cost Of Goods Manufactured

The total production cost of goods that were completed during a specific accounting period, including direct materials, direct labor, and manufacturing overhead.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, such as utilities, supplies, and salaries not directly tied to production.

Activity Base

A measure used for allocating costs to a product or service, typically based on the extent to which the product or service uses that activity.