The number and size of the market segments chosen by a firm must match its marketing capabilities.

Question

Quizplus · Accepted Answer

This statement is true. It is important for a firm to choose market segments that it can effectively target and serve with its marketing capabilities. Choosing too many or too large market segments may result in the firm stretching its resources too thin, while choosing too few or too small market segments may limit its potential customer base and revenue opportunities. Therefore, the number and size of market segments chosen should be aligned with the firm's marketing capabilities.

The Number and Size of the Market Segments Chosen by a Firm