When Deciding How Far to Carry the Segmenting Process

question 89

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 these alternatives are true.

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Definitions:

Risk-Adjusted Return

This is a measure of how much risk is involved in generating a security's or portfolio's return, helping investors to compare the performance of different investments on a risk-adjusted basis.

Total Risk

The overall uncertainty associated with an investment, combining both systemic and idiosyncratic risks.

Long Position

An investment strategy where an investor buys securities with the expectation that their price will rise, aiming to sell them at a higher price in the future.

Maturity

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.