Market segmentation allows a company to efficiently focus resources and efforts by avoiding those parts of the market it cannot satisfy well, thereby avoiding unwieldy competition.

Question

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Market segmentation helps a company to identify specific segments of the market with distinct needs and wants, and then target those segments with targeted marketing and product offerings. By doing so, the company can avoid areas of the market where it cannot compete effectively and instead focus on areas where it has a competitive advantage, leading to improved efficiency and better use of resources.

Market Segmentation Allows a Company to Efficiently Focus Resources and Efforts