Which of the following statements regarding when and how to segment markets is most accurate?
A)Even if a firm finds only one potential market segment, it should take advantage of the method to appear cutting-edge to its competitors and customers.
B)Market segmentation only works for large corporations; small businesses don't have the resources to engage in the process.
C)Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
D)If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
E)Market segmentation strategies work less than 10 percent of the time.

Question

Quizplus · Accepted Answer

Market segmentation is a process that involves dividing the market into smaller segments based on various criteria such as demographics, psychographics, and behavior. The purpose of market segmentation is to identify and target specific groups of consumers with tailored marketing messages and products that meet their needs and preferences. When firms invest time and resources in market segmentation, they expect to increase their sales, profits, and return on investment by focusing their efforts on the most valuable and profitable customer segments. Therefore, option D is the most accurate statement.

Which of the Following Statements Regarding When and How to Segment