To be identified as a market segment, its members must:
A)have different needs and respond similarly to market actions.
B)represent a large share of the entire market and have critical buying power.
C)have common needs and respond similarly to marketing actions.
D)have different needs and have potential for future growth.

Question

Quizplus · Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups of consumers who have similar needs, wants and characteristics. To be identified as a market segment, its members must have common needs and respond similarly to marketing actions. This helps companies to design and offer products that meet the specific needs of the targeted segment and to create effective marketing strategies that resonate with them. Option A is incorrect because having different needs is not enough; they must also respond similarly to market actions. Option B is incorrect because market share and buying power are not the only factors that define a segment. Option D is incorrect because potential growth is not a defining characteristic of a market segment.

To Be Identified as a Market Segment, Its Members Must