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 and profits.
E)Market segmentation strategies work less than 25% 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 a process that involves dividing a larger market into smaller groups of consumers who have similar needs and characteristics. The ultimate goal of this process is to increase sales and profits by targeting specific segments with tailored marketing messages, products, and services. Therefore, option D is the most accurate statement as it highlights the primary objective of market segmentation for business firms. Option A is incorrect as it implies that even a single segment may not be profitable for a firm. Option B is incorrect as market segmentation can work for small businesses as well, and there are various cost-effective methods to segment a market. Option C is incorrect as governments can also benefit from market segmentation techniques to identify specific groups of citizens that require public services. Option E is incorrect as it is not based on any empirical evidence and doesn't reflect the actual success rate of segmentation strategies.

Which of the Following Statements Regarding Market Segmentation Is Most