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3 years ago

Explain the importants of marketing segmentation

1 answer:

7 0

A market segment is a subgroup of people or organizations that have one or more characteristics in common that cause them to have the same product needs. Everyone needs water to drink, but does everyone need bottled water? For companies to successfully reach their precise customer, they need to divide a market into similar and identifiable segments through market segmentation.

The main reason companies divide markets into identifiable groups is so that the marketing team can create a custom marketing mix for the specific group. For example, Farmer Joseph realized early on that not everyone would purchase his expensive organic produce. He did not want to exhaust his financial budget by advertising to the masses. Instead, he identified his target market and created a specific marketing plan to communicate effectively with his prime customers.

His target market consisted of females age 18-65, with an income of $50,000+, who have healthy eating habits and who are concerned about pesticides. His plan consisted of ad placement in local women's magazines, newspapers and also email blasts to a list that he formulated with age and income specifics. Lastly, he advertised with a local gym about his healthy produce. Marketers have numerous choices in how they can segment a market.

If the farmer had planned on targeting everyone, then the type of segmentation would have been called no market segmentation. The opposite type of segmentation would be if he decided to target based on every individual factor available. This would be called a fully segmented market. Other choices include segmenting just by gender, income, lifestyle, ethnicity, family life cycle, age group, or even a combination-type.

Companies will not survive if the marketing strategy is dependent upon targeting an entire mass market. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategic marketing decisions.

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_____ is a form of financial exchange that involves the use of checks.

dalvyx [7]

Answer:

deposit money

Explanation:

this is because it can not be online but checks are a way of transferring currency and so can not be currency so A deposit money is cancelled out answer

5 0

2 years ago

Read 2 more answers

which is true:_______A. high p/e ratio could mean that the company has a great deal of uncertainty in its future earningsB. low

kondor19780726 [428]

Answer:

1. Which Statement is true:

B. low p/e ratio could mean that the company has a great deal of uncertainty in its future earnings.

2. Qualitative analysis:

According to your understanding, a company with less competition is considered to be (more or less) risky than companies with a wide multiple competitors.

Explanation:

Company A's Price/Earnings (P/E) ratio is calculated as the market price of its shares divided by the earnings per share. It shows the value investors have over a stock. With a high P/E ratio, the company's stock could be over-valued, or investors are expecting high growth rates in the future. This is unlike a low P/E ratio that shows that the stock is undervalued or that investors are not expecting high growth rates in the future because of uncertainty.

Without competition, Company A is riskier than Company B which operates efficiently and competitively. There is that competitive edge that competitive companies possess. Monopolies do not enjoy that advantage. It is, therefore, riskier to have no competition.

5 0

3 years ago

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $145 per share for months, and you believ

user100 [1]

<u>Solution and Explanation:</u>

a) Let us calculate the value of call using Put-Call Parity,

i.e. Put + Stock = Call + Present Value of Exercise Price (note that it is 6 - months time period)

$\text { i.e. } 8.19+145=\mathrm{call}+145 / 1.09^{\wedge} 0.5$

$\text { i.e. } 8.19+145=\mathrm{call}+145 / 1.044$

Therefore, Call = $ 14.31

b1) The option strategy best suited in the given condition is - Short or Sell Straddle.

In shorting a straddle, you simultaneously sell a call and a put, thereby earning premium in both the legs of the strategy. It is a neutral options strategy wherein profits can be made when stock price is expected to remain stagnant. However it is to be noted that the profits are limited to the option premium earned on call and put but the risk is unlimited. i.e. only when you are reasonably sure as to the stock price remaining more or less constant, go for short straddle.

b2) Assuming that we went for short straddle, we earn $ 8.19 premium on put and $ 14.31 premium on call i.e. we earn maximum of $ 22.50 on this stock due to our position in options.

b3) WITHOUT CONSIDERING TIME VALUE -

Now, CONSIDERING TIME VALUE - the stock price would need to swing in either direction by ( $22.50 * 1.09 \times 0.5)=$ $ 23.49 for us to start incurring losses.

c) Buy the call, sell the put and lend $ 138.8848

Let 'Price' in the table below denote the stock price at the end of 6 months.

If we take a long position in call, the immediate CF is $ 14.31 (premium outflow).

If we take a short position in put, the immediate CF is $ 8.19 (premium inflow)

Position Immediate CF CF in 6 months CF in 6 months

(if price < X) (if price > X)

Call (Long) -14.31 0 Price - 145

Put (Short) 8.19 - (145 - price) 0

Lending Position $145 / 1.09^{\wedge} 0.5=138.88$ 145 145

Total Price Price

NOTE- FIGURES ARE SUBJECT TO ROUNDING OFF.

3 0

3 years ago

Were Social Security and Medicare the largest contributors of revenue for the federal government in Fiscal Year 2019? Explain.(1

Bingel [31]

It is false because the individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

<h3>What is an Income tax?</h3>

These are tax imposed on earned income by people in a country while the Social Security and Medicare taxes are imposed on people income while working as well.

However, the individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

Therefore, the Option C is correct.