With multisegment targeting a company could benefit

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108. With multisegment targeting, a company could benefit from all of the following EXCEPT: a. greater sales volume b. greater product design and management cost c. higher profits d. larger market share e. economies of scale in manufacturing ANS: B Creating and supporting different marketing mixes requires more company resources than just design- ing one mix, which is not a benefit. PTS: 1 REF: 128 OBJ: 08-7 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Strategy 109. A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new product cut into sales of a firm’s existing products. PTS: 1 REF: 129 OBJ: 08-7 TYPE: Def
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TOP: AACSB Reflective Thinking | TB&E Model Strategy 110. _____ is one of the potential disadvantages associated with a multisegment strategy. PTS: 1 REF: 129 OBJ: 08-7 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Strategy 111. Pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids while still marketing traditional antacids. Traditional antacids treat heartburn by neutral- izing stomach acid. If sales of the new acid blockers reduce sales of the traditional antacids, then _____ has occurred. PTS: 1 REF: 129 OBJ: 08-7 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy 112. When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the tradition- al powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This exemplifies a drawback of multisegment targeting strategy called: a. demarketing b. selective perception c. undifferentiation d. cannibalization e. market repositioning ANS: D Cannibalization occurs when sales of a new product cut into sales of a firm's existing products. PTS: 1 REF: 129 OBJ: 08-7 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy
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