Question

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
Identify the correct segment within which they belong?

Answer 1

Answer:

The answer is: D) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

Explanation:

Market segmentation is the process by which a company defines and divides it target market into different segments. Each segment is made up of potential customers that share similar needs and characteristics. The whole idea behind it, is that the marketing efforts of the company match the expectations of their target segment.