Your firm's finance department has just issued new guidelines for how market segments are to be evaluated based on sales expectations. In general, the new guidelines require the marketers to measure company sales potential based on a general economic forecast for a time period. Which one of the following types of market segment evaluation approaches is the finance department advocating?
A)Breakdown approach
B)Economic analysis approach
C)Buildup approach
D)Market potential approach
E)Gross margin approach

Question

​Your firm's finance department has just issued new guidelines for how market segments are to be evaluated based on sales expectations. In general, the new guidelines require the marketers to measure company sales potential based on a general economic forecast for a time period. Which one of the following types of market segment evaluation approaches is the finance department advocating?
A)Breakdown approach
B)Economic analysis approach
C)Buildup approach
D)Market potential approach
E)Gross margin approach

Quizplus · Accepted Answer

The finance department is advocating for an economic analysis approach to evaluate market segments based on sales expectations. This approach involves measuring sales potential based on a general economic forecast for a given time period. The breakdown approach involves segmenting the market based on various demographic or psychographic variables, while the buildup approach involves estimating market share based on the company's strengths and weaknesses. The market potential approach involves estimating the total possible sales in a given market, and the gross margin approach involves analyzing profitability.

​Your Firm's Finance Department Has Just Issued New Guidelines for How

Your Firm's Finance Department Has Just Issued New Guidelines for How