Which of the following statements regarding market segmentation is most accurate?
A) Even if a firm finds only one potential market segment, it should take advantage of the opportunity, no matter what.
B) Market segmentation only works for large corporations because small businesses don't have the resources to engage in the process or implement the resulting marketing actions.
C) Governments should not attempt market segmentation because there is no need for them to do so.
D) If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
E) Market segmentation strategies work less than 25 percent of the time. However, for the instances that it does work, the benefits more than compensate for previous failures.

Question

Quizplus · Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. By doing so, firms can create marketing strategies targeted to those specific segments and increase their sales and profits. Therefore, the statement that best reflects the purpose of market segmentation is D: If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. Option E is incorrect because market segmentation has a higher success rate than 25 percent in most industries. Options A, B and C are incorrect because they are not accurate nor reflect the advantages of market segmentation.

Which of the Following Statements Regarding Market Segmentation Is Most