Although a Market Segment Can Meet All Criteria for Viability

question 11

Multiple Choice

Although a market segment can meet all criteria for viability. a firm may choose to not pursue the segment. Which of the following is a reason why this might occur?

• A) A competitor has already targeted the segment.
• B) Targeting the segment could lead to antitrust concerns.
• C) The segment has no synergy with the firm's mission.
• D) The segment is difficult to reach via communication and/or distribution.
• E) The segment's members are not easily identifiable.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, which include expenses such as rent, utilities, and salaries for supervisors.

Activity-Based Costing

Activity-Based Costing (ABC) is a method of allocating overhead and indirect costs to specific products or activities based on their consumption of resources, assisting in more accurate product costing.

Total Quality Management

A comprehensive approach to long-term success that views continuous improvement in all aspects of an organization's operations as a process and not as a short-term goal.

Balanced Scorecard

A method for planning and managing strategy that aligns organizational activities with its vision and strategy, enhances communication both internally and externally, and tracks progress towards achieving strategic objectives.