The process of market segmentation involves:
A) identifying small target markets and expanding them into broad product markets.
B) identifying broad product markets and segmenting then into narrower target markets.
C) identifying target groups with the fewest potential customers.
D) selecting a marketing mix to reach everyone.
E) identifying target markets based on consumers' gender alone.

Question

Quizplus · Accepted Answer

Market segmentation involves identifying broad product markets and then dividing them into smaller and more specific target markets based on consumer characteristics, needs, and preferences. This allows marketers to tailor their marketing mix to better suit the needs of specific groups of consumers and ultimately increase their chances of success in the market. Option A, identifying small target markets and expanding them into broad product markets, is not the correct approach as it goes against the basic principles of market segmentation. Option C, identifying target groups with the fewest potential customers, is also not a viable option since the goal of market segmentation is to identify groups with the greatest potential for profit. Option D, selecting a marketing mix to reach everyone, is not practical as it would result in a diluted marketing message that isn't targeted to anyone in particular. Option E, identifying target markets based on gender alone, is also not sufficient as there are many other variables that can be used to segment a market.

The Process of Market Segmentation Involves