Dividing the market into various groups of customers that a company may serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation

Question

Quizplus · Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups of customers with similar needs, characteristics or behaviors. This allows companies to create targeted marketing strategies that cater to the specific needs of each group, rather than using a one-size-fits-all approach. Market segmentation helps companies to identify the most profitable segments of the market, and to tailor their products, pricing, promotion, and distribution strategies to meet the needs of those segments.
Positioning refers to the way a company presents its product or brand in the minds of its target customers relative to its competitors. Customization refers to the process of creating a product or service tailored to the specific needs and preferences of an individual customer. Target marketing refers to the practice of selecting a specific segment of the market to focus on, and developing marketing strategies specifically for that segment. Differentiation refers to the process of creating a unique product or brand identity that sets it apart from competitors in the market. While these concepts are related to market segmentation, they are not synonymous with it.

Dividing the Market into Various Groups of Customers That a Company