When Evaluating Market Segments, Assessment of Competitors Is Important Because

question 201

Multiple Choice

When evaluating market segments, assessment of competitors is important because

• A) it is difficult to segment a market when it has multiple competitors.
• B) an absence of competitors usually creates difficulties in accurately measuring segment sales potential.
• C) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.
• D) a competitive analysis may lead to confusion as to who are the key competitors.
• E) competition is generally not a major problem as long as a marketer is aware of it.

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Definitions:

Car Dealerships

Businesses specialized in selling new or used cars, often also offering maintenance services and financing options.

Grocery Stores

Retail stores specializing in the sale of food and household items.

Enterprise Value

A measure of a company's total value, calculated as market capitalization plus debt, minority interest, and preferred shares, minus total cash and cash equivalents.

Market Cap

The total market value of a company's outstanding shares of stock, calculated by multiplying the stock's current market price by the total number of shares.