Which of the following statements regarding market segmentation is most accurate?
A)Secondary data is irrelevant in forming a market-product grid since you are deciding matters that are specific to your own firm.
B)In most segmentation situations, a single product does not fit into an exclusive market niche.It is important that when grouping products there is no overlap between cells.
C)It is important to limit information input from too many sources because it can confuse the issue.
D)Awareness of competition may be important in forming target markets but not in selecting target markets.
E)In market segmentation, taking action refers to marketing efforts, not in production changes.

Question

Quizplus · Accepted Answer

Option B is the most accurate statement as market segmentation involves identifying groups of customers who have similar needs or behaviors and grouping them together to create a market segment. It is common for a single product to fit into more than one segment, and it is important to ensure that there is no overlap between cells when grouping products. Secondary data can be valuable in forming a market-product grid, and awareness of competition is crucial in both forming and selecting target markets. Taking action can refer to both marketing efforts and production changes when implementing a segmentation strategy. Option A is incorrect as secondary data can be useful in forming a market-product grid. Option C is incorrect as limiting information input may result in missed opportunities or incomplete understanding of the market. Option D is incorrect as awareness of competition is important in both forming and selecting target markets.

Which of the Following Statements Regarding Market Segmentation Is Most