Estimating the Cost of Entering a Market and Focusing on a Specific

question 148

Multiple Choice

Estimating the cost of entering a market and focusing on a specific target segment is important because

• A) cost estimates are crucial to estimating sales potential accurately.
• B) higher costs will keep other potential competitors from entering that particular segment.
• C) customers are more likely to be attracted to marketers that invest heavily in the target segment.
• D) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.
• E) higher cost generally ensures long-term success.

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Definitions:

Principle Of Scarcity

A tactic used in negotiation and persuasion suggesting that a product, resource, or opportunity is limited in availability, thereby increasing its desirability.

Scarce Resource

A resource that is limited in availability and cannot meet all demands.

Decision-Making Process

The sequence of steps or actions taken to identify and solve problems or make choices between alternative courses of action.

Tough Decisions

Challenging choices that often involve a high level of risk, uncertainty, or complexity.