What Are the Four Critical Concepts That Are Essential to Understanding

question 6

Multiple Choice

What are the four critical concepts that are essential to understanding and becoming fluent in the language of marketing (select four that apply) ?

• A) Segmentation and targeting clarify how customers will be served.
• B) Segmentation breaks down the mass market into submarkets.
• C) Targeting takes into account the whole market that can be considered in terms of smaller market segments.
• D) Differentiation calls for the creation of superior value.
• E) Positioning the product is completed in a manner where customers perceive it to be distinctive and desirable.

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Definitions:

Dollar Sales

The total value of goods or services sold, measured in dollars, within a specific period of time.

Target Profit

The desired net income a company aims to achieve within a specific period.

Contribution Margin Ratio

The contribution margin ratio is the percentage of each sales dollar remaining after deducting variable expenses, indicating how much of each dollar contributes to fixed expenses and profit.

Operating Leverage

An indicator of the way in which growth in revenue results in an increase in operating profit, revealing the ratio of fixed to variable expenses within a business.