Firms Use a Differentiated Targeting Strategy Because

question 145

Multiple Choice

Firms use a differentiated targeting strategy because

• A) it is easier than mass marketing.
• B) it helps obtain a bigger share of the market.
• C) it is better than focusing on individual or small groups of potential customers.
• D) most market segments are too small to be profitable.
• E) banks are more willing to extend credit to companies with this strategic approach.

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Definitions:

Covenants

Clauses in a contract or loan agreement that stipulate certain actions that must be taken or avoided by the borrower.

Dividend Payments

Periodic payments made by a company to its shareholders out of its profits or reserves.

Dividend Payout Ratio

A financial metric that shows the percentage of earnings a company distributes to shareholders in the form of dividends.

Yearly Dividend

The total dividend payment a company distributes to its shareholders annually, often expressed as a per share amount.