The Objective of Segment Profitability Decisions Is to Identify the Segments

question 151

True/False

The objective of segment profitability decisions is to identify the segments that have a negative segment margin so that managers can drop them or take corrective actions.

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Definitions:

Maximizing Sales

Strategies and efforts aimed at increasing the volume of products sold, thereby boosting revenue.

Market Segments

Groups of potential customers with similar needs, desires, and characteristics that a company targets with specific products or marketing campaigns.

Segmenting

The process of dividing a larger market into smaller groups or segments with similar needs, characteristics, or behavior, to target marketing efforts more effectively.

Repositioning

The process of changing the market's perception of a product or brand over time to target a new segment or market.