Which of the Following Criteria Should a Marketing Manager Use

question 118

Multiple Choice

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

• A) The segments should be substantial-big enough to be profitable-and operational-useful for identifying customers and deciding on marketing mix variables.
• B) The people within a market segment should be as homogeneous as possible with respect to the segmenting dimensions and their likely response to marketing mix variables.
• C) The people in different market segments should be as heterogeneous as possible with respect to the segmenting dimensions and their likely response to marketing mix variables.
• D) All of these criteria would be useful.

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Definitions:

Net Profits

The amount of money left over after all expenses, taxes, and deductions are subtracted from a company's total revenue.

Compensating Balance

A minimum account balance that a company agrees to maintain in a bank in return for banking services.

Business Loan

A loan specifically intended for business purposes, providing the necessary capital for start-up or expansion.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a reference point for various types of loans.