How does a business know it has effectively segmented its markets?
What will be an ideal response?
Successful segmentation of markets should create segments that are rated favorably based on certain criteria. First, a segment must be substantial enough to generate the profit levels that a company needs to operate. Next, the company should be able to measure the market to effectively manage it, which involves being able to estimate the size of the market. Third, a company needs to differentiate to analyze how the various segments react to different marketing strategies. Fourth, a market segment needs to be accessible, which means that the firm can reach and service a specific segment. Lastly, effective segmentation involves identifying actionable markets where the firm can develop strategies to attract the customers in this segment.
You might also like to view...
International investors believe that when a country gets into financial trouble, the IMF will rescue the country, thus reducing the investors' risk. As a result, investors take greater risks than they would otherwise. This is an example of
A. a risk premium. B. a lender of last resort. C. adverse selection. D. moral hazard.
Dan Jones and Pat Smith are two employees of Lone Star Company. In January 2019, Dan's gross pay was $11,500, and Pat's gross pay was $15,400. All earnings are subject to FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. Which of the following would be included in the entry to record the payroll tax expense to be paid out by Lone Star Company for January?
A) a debit to Salaries Payable to employees for $390.05 B) a debit to FICA-OASDI Taxes Payable for $390.05 C) a credit to FICA-Medicare Taxes Payable for $390.05 D) a credit to Salaries Expense for $390.05
Which method of setting an advertising budget is based on analyzing competitors' spending?
A) the percentage-of-sales method B) the top-down method C) the bottom-up method D) the objective-task method E) the competitive-parity method
Which of the following is not a prerequisite to paying a cash dividend?
A) formal action by the board of directors B) market value in excess of par value per share C) sufficient cash D) sufficient retained earnings