Define multisegment targeting and discuss the advantages and disadvantages of this targeting strategy.
What will be an ideal response?
A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each has a multisegment targeting strategy. This strategy offers many potential benefits to firms, including greater sales volume, higher profits, larger market share, an economies of scale in manufacturing and marketing. yet it may also involve greater product design, production, promotion, inventory, marketing research, and management costs. Another potential disadvantage is cannibalization, which occurs when sales of a new product cut into sales of a firm's existing products.
You might also like to view...
According to the Chain Restaurant Study in your text, the researcher had collected data but did not know ________
A) the marketing research problem B) the management decision problem C) the data collection process D) the approach to the problem
Charlie Putnam received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates
The e-mail simply asked customers to provide their address, date of birth, social security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Charlie researched the company and discovered that the e-mail was a fraud. This is an example of ________. A) cyberbullying B) phishing C) adware D) spamdexing E) viral marketing
The single milling machine at Stout Manufacturing was severely overloaded last year. The plant operates eight hours per day, five days per week, and 50 weeks per year. Management prefers a capacity cushion of 15 percent
Two major types of products are routed through the milling machine. The annual demand for product A is 3000 units and 2000 units for product B. The batch size for A is 20 units and 40 units for B. The standard processing time for A is 0.5 hours/unit and 0.8 hours/unit for B. The standard setup time for product A is 2 hours and 8 hours for product B. How many new milling machines are required if Stout does not resort to any short-term capacity options? A) no new machines B) 1 or 2 new machines C) 3 or 4 new machines D) more than 4 new machines
Which of the following equations can be used to compute the total materials variance? (A = Actual; S = Standard; Q = Quantity; P = Price)
A. (AQ × AP) ? (AQ × SP) B. (AQ × AP) ? (SQ × SP) C. (SQ × SP) ? (SQ × SP) D. (AQ × SP) ? (SQ × SP)