The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is referred to as
A)mass marketing.
B)concept testing.
C)market segmentation.
D)positioning.
E)market fragmentation.

Question

Quizplus · Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups based on shared characteristics such as demographics, psychographics, or behaviors. This allows companies to tailor their marketing strategies and products to better meet the needs and preferences of specific segments, ultimately leading to more effective and efficient marketing efforts. Mass marketing, on the other hand, involves targeting a broad, undifferentiated market with a standardized product and message. Concept testing refers to the process of evaluating a new product or service concept among a representative group of target consumers, while positioning involves creating a unique image and identity for a brand or product relative to competitors. Market fragmentation refers to the increased specialization and diversity within a market, which can make it more challenging for companies to effectively target and serve specific segments.

The Process of Dividing a Larger Market into Smaller Groups