Question

The attempt by global companies to pinpoint high-income consumers in each market emphasizes the importance of identifying the appropriate segmentation and targeting variables. Market segmentation represents _________.

1) the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors
2) the process of targeting specific groups of consumers with marketing messages and promotions
3) the process of analyzing consumer data to identify potential high-income consumers
4) the process of developing marketing strategies to reach a global audience

Answer 1

Market segmentation is the division of a market into distinct groups of buyers with different needs, characteristics, or behaviors, especially important in a globalized, technology-driven marketplace.

Step-by-step explanation:

Market segmentation represents the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors. This concept is critical in the current global and technological landscape where consumers can make purchases from anywhere in the world, thereby increasing competition among sellers. Increased connectivity and globalization have allowed for greater consumer choice and have driven the need for companies to distinguish their products through differentiation and to understand consumer behavior in more depth. It's not just about selling; firms must tailor their strategies and marketing messages to specific groups to stay competitive, taking into account that goods and services markets are increasingly international.

Therefore, the correct answer is option 1): 'the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors'. This segmentation enables businesses to craft targeted strategies and compete effectively in an increasingly globalized and digital marketplace.