Which of the Following Criteria Should a Marketing Manager Use

question 95

Multiple Choice

Which of the following criteria should a marketing manager use when segmenting a broad product-market?

• A) The segments should be operational-i.e., only quantitative dimensions are useful.
• B) The people in different segments should be as heterogeneous as possible with respect to their likely response to marketing mix variables.
• C) The people within a market segment should be as heterogeneous as possible with respect to their likely response to marketing mix variables.
• D) The market segments should be substantial-i.e., big enough to minimize the firm's costs.
• E) All of these criteria would be useful.

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Definitions:

Market Power

Describes the ability of a company or group to manipulate or control prices within a market, often by influencing supply, demand, or both.

Four-Firm Concentration Ratio

A measure of market concentration that quantifies the market share of the four largest firms within an industry, often used to assess the competitiveness of a market.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to price-taking behavior.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competitive practices based on product differentiation.