If an entrepreneur keeps the customer segment too broad, what problem may occur?
Answer and explanation
Correct answer: Product and promotion may become unclear
Different customer groups can have different needs, budgets, buying habits, and preferred communication channels. If the target segment is too broad, the product may try to satisfy incompatible needs and the promotional message may become vague. Focused segmentation helps an entrepreneur design a suitable offering. It cannot guarantee profit or eliminate risk, and customers are not identical.
Frequently asked questions
What is the correct answer to this question?
Product and promotion may become unclear
Why is this the correct answer?
Different customer groups can have different needs, budgets, buying habits, and preferred communication channels. If the target segment is too broad, the product may try to satisfy incompatible needs and the promotional message may become vague. Focused segmentation helps an entrepreneur design a suitable offering. It cannot guarantee profit or eliminate risk, and customers are not identical.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
