Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

Question

Quizplus · Accepted Answer

Market segmentation is the process of identifying and profiling distinct groups of buyers who differ in their needs and wants. The process involves grouping customers based on characteristics such as demographics, psychographics, behavior, and geography. The purpose of segmentation is to enable marketers to tailor their marketing mix to better meet the needs of each segment, resulting in more effective marketing and higher profits. Option A is incorrect because changing the identity of a product is not part of segmentation, but rather a process of repositioning. Option B is incorrect because it describes market targeting, which is the second step in the segmentation process. Option C is incorrect because it describes brand positioning, which is the process of creating an image or identity of the product in the minds of the target market. Option E is incorrect because it describes marketing effectiveness, which is not related to segmentation.

Which of the Following Statements About Market Segmentation Is True