Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets.

Question

Quizplus · Accepted Answer

Effective market segmentation does indeed involve the process of first identifying broad product-markets and then breaking them down into smaller submarkets that are more homogeneous in terms of customer needs and preferences. This allows companies to tailor their marketing strategies more effectively to different segments of the market and better meet the diverse needs of their customers.

Effective Market Segmentation Is a Two-Step Process That Starts with Naming