Market segmentation refers to
A)the philosophy that to do a truly excellent job of marketing,a company should concentrate only one customer segment at a time.
B)sorting prospective buyers into groups that are willing (or not)to pay more than the cost of production for a good or service.
C)disaggregating prospective buyers from groups into segments of one (individuals)and creating specific products that will satisfy each individual's unique needs.
D)aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
E)the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

Question

Quizplus · Accepted Answer

Market segmentation is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing strategies. The purpose of market segmentation is to identify groups of customers who share similar needs and wants so that they can be targeted with tailored marketing messages and offers. This helps marketers to design products, pricing, promotion, and distribution strategies that are more effective in reaching and satisfying the needs of specific customer segments. Therefore, option D is the correct answer.

Market Segmentation Refers to