Drawback Of Market Segmentation Flashcards
1
Q
1
A
Need to create multiple products
2
Q
2
A
To meet the needs of different segments
3
Q
3
A
For example using geographical segmentation to create different products for customers in different countries
4
Q
4
A
Therefore unable to benefit from marketing economies of scale
5
Q
5
A
As each product will be targeted at a smaller group of Customers
6
Q
6
A
This means that the fixed cost of R&D to produce the product
7
Q
7
A
Spread over less units
8
Q
8
A
Leading to higher unit fixed cost
9
Q
9
A
Lower operating profit margins
