Five General Criteria Are Often Used to Select Target Segments

question 103

Multiple Choice

Five general criteria are often used to select target segments.They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment;and __________.

• A)compatibility with the organization's objectives and resources
• B)potential of a marketing action to reach a segment
• C)competitive position
• D)difference of needs of buyers among segments
• E)potential for increased profit

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Definitions:

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Year 2

Refers to the second year of a project, company's fiscal year, or any specified time period.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over during a period.

Average Sale Period

The average amount of time it takes for a business to sell its inventory, also known as inventory turnover period.