Which of the following statements regarding market segmentation is most accurate?
A)Even if a firm finds only one potential market segment, it should take advantage of the opportunity no matter what.
B)Market segmentation only works for large corporations because small businesses don't have a lot of money either for the process or the corresponding actions.
C)You should not try market segmentation unless you are willing to create or carry additional products.
D)If a business firm goes to the trouble and expense of segmenting its markets, it expects to reveal a way to increase sales, profits, and return investment.
E)Market segmentation strategies work less than 25% of the time, however, for the times it does work, the benefits more than compensate for previous failures.

Question

Quizplus · Accepted Answer

Market segmentation is the process of dividing a larger market into smaller subgroups of consumers with similar needs and preferences. If a business firm goes through the trouble and expense of segmenting its markets, it expects to reveal a way to increase sales, profits, and return on investment by targeting each segment with a specific marketing mix. Therefore, statement D is the most accurate. The other options are not accurate. Option A is not true because a business should evaluate the potential and profitability of a segment before investing in it. Option B is not true because small businesses can also benefit from market segmentation by targeting a specific customer base. Option C is misleading because businesses may choose to differentiate their products to appeal to different segments but are not required to create new products. Option E is not supported by any research or evidence.

Which of the Following Statements Regarding Market Segmentation Is Most