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 the above.

Question

Quizplus · Accepted Answer

The first step in market segmentation is to name a broad product-market of interest to the firm, and then segment it into smaller groups based on similar needs, characteristics or behaviors. Only after the product-market has been named can the firm begin to identify and cluster people with similar needs into market segments. Finding demographic characteristics or evaluating market segments comes later in the segmentation process.

Which Is the First Step in Market Segmentation