Which is the first step in market segmentation?
A) Finding one or two demographic characteristics to divide up the whole mass market.
B) Clustering people with similar needs into a market segment.
C) Naming a broad product-market of interest to the firm.
D) Evaluating market segments to determine if they are large enough.
E) None of these alternatives is the first step in market segmentation.

Question

Quizplus · Accepted Answer

The first step in market segmentation is to name a broad product-market of interest to the firm. This involves identifying the general category of products or services that the company offers and wants to market to a specific group of customers. Only after this step is taken can the company move on to identifying specific segments within the broader market.

Which Is the First Step in Market Segmentation