When selecting target markets, it is important to balance revenue potential with
A) market research.
B) the cost to serve the segment.
C) geographic variables.
D) demographic variables.
E) psychographic variables.

Question

Quizplus · Accepted Answer

While revenue potential is important, it is also crucial to consider the cost of serving a particular market segment. A high potential for revenue may be outweighed by high costs, ultimately resulting in a lower profit margin. Therefore, balancing revenue potential with the cost to serve the segment is necessary for making informed decisions about target markets.

When Selecting Target Markets, It Is Important to Balance Revenue