BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -The goal of homogeneity in customers’ likes or dislikes is more achievable as the segment size gets smaller, but if the segment is too small, it might not be profitable to serve. On a continuum from mass marketing to one-to-one marketing, market segmentation is in the middle.
Detailed explanation-2: -Segments become more homogeneous as they increase in size. A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view. Some companies that tried mass customization have scaled back their attempts because it is not cost-effective.
Detailed explanation-3: -Niche marketing is a type of segmentation in which the company strategically focuses, targeting what? a smaller market, with particular needs that the company can serve well.
Detailed explanation-4: -Companies that adopt mass marketing assume that all customers in the product market have similar needs, and that these needs can be reasonably satisfied with a single marketing mix.