business firm goes to the trouble and expense of segmenting its markets when
A) it changes its advertising campaign.
B) competitors enter the marketplace.
C) the environment becomes uncertain.
D) it expects that this will increase its sales, profit, and return on investment.
E) there is a recessionary economic environment.

Question

Quizplus · Accepted Answer

The primary reason why a business firm goes to the trouble and expense of segmenting its markets is to increase its sales, profit, and return on investment. Segmenting markets allows the firm to better understand the needs and wants of each specific group of customers, which in turn enables the firm to create more targeted and effective marketing campaigns that resonate with each group. This can lead to increased sales and profits for the firm. Changing advertising campaigns, new competitors, uncertain environments, and recessionary economic environments may also impact a firm's decision to segment its markets, but primarily the goal is to increase sales and profits.

Business Firm Goes to the Trouble and Expense of Segmenting