Module 2 Assignment

Evaluate this statement: Large customers tend to be either the most or least profitable in the customer base of a business-to-business firm.Why is the cost of serving a long-standing customer far less than the cost of acquiring a new customer?Sara Lee Corporation derives more than $1.5 billion of sales each year from the institutional market (for example, hospitals, schools, and restaurants). Explain how a firm such as Sara Lee or General Mills might apply the concept of market segmentation to the institutional market. In other words, how would you segment the institutional market if you were Sara Lee?

 

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