Market Segmentation Can Help Marketers Increase Their Accuracy in Reaching

question 70

Multiple Choice

Market segmentation can help marketers increase their accuracy in reaching the right markets,but it is best used flexibly with other marketing tools.Choose the statement below that best summarizes the market segmentation process.​

• A)​Market segmentation can be applied in both for-profit and nonprofit organizations to determine a consumer target market.
• B)​Market segmentation is accomplished in four steps: it employs user profiles; forecasts the overall market; estimates the market share; and selects specific target markets.
• C)​Market segmentation can be accomplished with many approaches: geographic, demographic; psychographic, and product-related.
• D)​Market segmentation methods can be management-driven, based on management's observations, or market-driven, based on customer response.
• E)​Market segmentation can be used to calculate a lifetime value for each customer in a segment.

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Definitions:

Activity Base

A measure used to assign costs to cost objects based on their use of activities, often used in activity-based costing.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service.

Machine Hours

A measurement of the amount of time a machine is operated, used in allocating manufacturing costs to products.

Annual Overhead Costs

The total of all expenses that are not directly tied to the production of goods or services within one year.