Which of the following statements regarding market segmentation is most accurate?
A)The bases for segmenting markets and the bases of selecting the segments from the alternatives are basically the same.
B)If a new segment is identified as having high growth potential, it is important to alter the company's organizational objectives.
C)The bases for segmenting markets and the bases of selecting the segments are considerably different from one another.
D)Expected growth is entirely dependent upon the marketing actions a firm is willing to take.
E)There are three criteria used for selecting a target segment-potential profits-relative market share-and consensus amongst the firm's decision makers.

Question

Quizplus · Accepted Answer

The statement that the bases for segmenting markets and the bases of selecting the segments are considerably different from each other is the most accurate. Market segmentation involves dividing the market into smaller groups of customers with similar needs, while selecting segments involves evaluating the attractiveness of each segment and selecting one or more target segments to focus on. The bases or criteria used for each of these processes will differ, as market segmentation focuses on identifying homogeneous groups of customers, while segment selection involves evaluating the potential profitability and fit with the company's objectives.

Which of the Following Statements Regarding Market Segmentation Is Most