The process of dividing a total market into market groups because people within each group have relatively similar product needs is called
A) segmentation.
B) diversification.
C) target marketing.
D) concentration.
E) customization.

Question

Quizplus · Accepted Answer

Segmentation is the process of breaking down a large, heterogeneous market into smaller, more homogeneous subsets of consumers who have similar needs, wants, or demographic profiles. This helps companies develop targeted marketing strategies that resonate with specific groups of consumers, rather than trying to appeal to everyone at once. Diversification refers to a company expanding its product or service offerings into new markets or industries, while target marketing involves identifying specific segments to focus on with marketing efforts. Concentration refers to a company's focus on a single product or niche market, and customization refers to tailoring products or services to individual consumer preferences.

The Process of Dividing a Total Market into Market Groups