Which of the following is a major reason why companies segment their markets?
A)It allows companies an opportunity to enhance their image
B)Companies identify which segments they might most effectively compete in and develop strategies suited for that segment
C)It allows companies to change their marketing strategies as consumers' tastes and preferences change
D)Through segmenting markets, companies can attract distributors

Question

Quizplus · Accepted Answer

Companies segment their markets in order to identify which segments they can best compete in and develop strategies tailored to those segments. This allows them to more effectively target their marketing efforts and improve their sales in specific areas.

Option A is incorrect because while enhancing a company's image may be a potential benefit of market segmentation, it is not a major reason why companies choose to segment their markets.

Option C is also incorrect because while adapting marketing strategies to changing consumer preferences may be a result of market segmentation, it is not a major reason why companies choose to segment their markets.

Option D is incorrect because while attracting distributors may be a potential benefit of market segmentation, it is not a major reason why companies choose to segment their markets.

Which of the Following Is a Major Reason Why Companies