Final answer:
The answer to the question is B. product-market grid. It is used by marketers to analyze the suitability of products for specific markets by considering the market structure, such as the level of competition and each firm's market power.
Step-by-step explanation:
A product-market grid is a marketer's tool in assessing products in terms of suitability for a market. It helps firms understand the market structure, which is a multidimensional concept that determines competitive dynamics within an industry. This tool involves considering various factors pertaining to production and cost conditions, as well as the degree of market power each firm holds.
By plotting products against potential markets, the product-market grid assists marketers in visualizing and strategizing market opportunities, competitive analysis, and product development direction. The grid typically involves analyzing segments within the market and assessing how well the firm's products meet the needs of each segment.
Understanding the market structure is vital as it influences the firm's decision on whether a product has the potential to succeed, and what strategies to employ to gain market share. This includes analyzing how much market power a firm has and how competitive the industry is.