Questions: The balancing point that determines just how unique a marketing mix a firm can afford to develop for a particular market segment is
Multiple Choice
supply.
profit.
investment.
demand.
opportunity cost.
Transcript text: The balancing point that determines just how unique a marketing mix a firm can afford to develop for a particular market segment is
Multiple Choice
supply.
profit.
investment.
demand.
opportunity cost.
Solution
The answer is profit: the balancing point that determines just how unique a marketing mix a firm can afford to develop for a particular market segment is profit.
Explanation for each option:
Supply: This refers to the amount of a product or service that is available to consumers. While supply can influence pricing and availability, it does not directly determine how unique a marketing mix should be for a market segment.
Profit: Profit is the financial gain a company makes after all expenses are subtracted from revenue. It is a critical factor in determining how much a firm can invest in developing a unique marketing mix. A firm will consider the potential profit from a market segment to decide how much customization and resources can be allocated to that segment.
Investment: Investment refers to the allocation of resources, such as time and money, into a project or market segment. While investment is necessary to develop a marketing mix, it is the potential profit that justifies and guides the level of investment.
Demand: Demand is the consumer's desire and willingness to pay for a product or service. While demand influences the need for a product, it does not directly determine the uniqueness of the marketing mix. Instead, demand can affect pricing and production levels.
Opportunity Cost: Opportunity cost is the potential benefit lost when choosing one alternative over another. While it is an important consideration in decision-making, it does not directly determine the uniqueness of a marketing mix. It is more about evaluating the trade-offs between different strategic options.
In summary, profit is the key factor that determines how much a firm can afford to customize its marketing mix for a particular market segment, as it reflects the financial viability of such efforts.