In the seven-step approach to market segmentation
A) the first step is to name the broad product-market.
B) small motels around a large urban area are the focus of the example.
C) the qualifying needs are identified before the determining needs.
D) the size of each submarket is not considered until Step 7.
E) All of these are true.

Question

Quizplus · Accepted Answer

In the seven-step approach to market segmentation, the process begins with naming the broad product-market, which sets the stage for further segmentation. The example of small motels around a large urban area illustrates how specific segments can be targeted. Qualifying needs, which are the basic criteria that must be met for a segment to be considered a potential target, are identified before determining needs, which are more specific and help in further refining the segment. The size of each submarket is indeed considered, but it is not left until the last step; it is an ongoing consideration as the market is segmented and defined.

In the Seven-Step Approach to Market Segmentation