Final answer:
Yes, it is true that marketers can segment markets based on the benefits customers expect from products. Market segmentation allows businesses to cater to specific consumer needs, enhancing satisfaction and encouraging competition. Advertising and additional services are ways to differentiate products within these market segments.
Step-by-step explanation:
True, a marketer can indeed segment a market in terms of the benefits that customers expect to receive from a particular product. This approach is one aspect of market segmentation, which involves dividing a broad consumer or business market, into sub-groups of consumers (known as segments) based on some type of shared characteristics. One of these characteristics can be the set of benefits that consumers seek in a product, such as quality, convenience, or price savings. Through this process, businesses aim to identify niches with specific needs, that can be better served with tailored products or services, often leading to enhanced customer satisfaction and loyalty.
Consumers ultimately benefit from companies focusing on specific market segments, as this leads to a greater choice of goods and potentially lower prices due to increased competition in the market. In addition, companies can prosper by more precisely meeting the demands of their targeted segment, thereby securing a more loyal customer base and increasing their market share and profitability. Indeed, the overall market benefits from this targeted approach through the availability of better quality products and the innovation it encourages among businesses striving to meet specific consumer needs.
Product differentiation, including both tangible and intangible aspects, plays a crucial role in how markets are segmented by marketers. Besides the physical attributes, many products carry with them reputations for high quality, the promise of satisfaction guarantees, or the provision of auxiliary services such as free delivery, all of which can influence consumer preference. Advertising also significantly shapes these intangible aspects, helping to create a perception in the consumer's mind that differentiates otherwise similar products.