When Deciding How Far to Carry the Segmenting Process

question 193

Multiple Choice

When deciding how far to carry the segmenting process,

• A) profit should be the balancing point--determining how unique a marketing mix the firm can offer to some target market.
• B) it is easier to develop effective marketing mixes for larger, more heterogeneous segments.
• C) cost considerations encourage less aggregating.
• D) the threat of potential competitors suggests more aggregating.
• E) All of the above are true.

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Definitions:

General and Administrative Expense Budget

A plan that estimates the overhead and administrative costs for a company over a specific period.

Manufacturing Budget

An estimated financial plan that outlines the projected costs associated with production, including direct materials, labor, and overhead.

Sales Budget

A detailed forecast of a company's sales revenue, considering factors like historical sales data, market trends, and sales goals.

Growth

The increase in size, value, or importance of an entity or aspect of an entity, often measured in terms of revenues, profits, or market share.