Subdividing a market into distinct subsets of customers according to their needs and the way they buy and use a product or service is

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The process of subdividing a market into distinct subsets of customers according to their needs and the way they buy and use a product or service is known as market segmentation. It helps in tailoring the marketing mix as per the requirements of each segment, thereby maximizing customer satisfaction and profits. Product diversification involves introducing new products or services in new markets, positioning is the process of creating a unique image or identity for a product or brand, market segregation is not a commonly used term, and market penetration refers to increasing the market share of an existing product or service in an existing market.

Subdividing a Market into Distinct Subsets of Customers According to Their