During Its Market Segmentation Process for the Nike LeBron X

question 266

Multiple Choice

During its market segmentation process for the Nike LeBron X basketball shoe,which sells for $200+ a pair,Nike decided to concentrate on affluent teens rather than members of high school basketball teams.This is an example of

• A)selecting target market segments to reach.
• B)forming products to be sold into groups.
• C)developing a market-product grid and estimating size of markets.
• D)taking marketing actions to reach target markets.
• E)forming prospective buyers into segments.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership interests in a corporation.

EBITDA Coverage

A ratio that measures a company’s ability to pay off its operational and debt-related expenses with its earnings before interest, taxes, depreciation, and amortization.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Depreciation

The systematic reduction in the recorded cost of a fixed asset over its useful life.