Question

What is market segmentation?

a. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
b. The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system
c. The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
d. Achieving company growth by increasing sales of current products to current market segments without changing the product

Answer 1

Market segmentation is the process of dividing a market into distinct groups of buyers with different needs or behaviors and targeting them with specific marketing strategies and products.

Step-by-step explanation:

Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, which could lead them to desire different products or services. This business strategy allows companies to target specific segments with tailored marketing programs and product offerings, rather than offering a single product or marketing approach to everyone in a diverse market.

Consider that a market is made up of a wide variety of consumers, and not all of them will want the same thing. Market segmentation acknowledges this diversity and tries to group consumers with similar attributes, needs, or purchasing habits. By focusing on these segments, businesses can more effectively allocate their resources and create more impact with their marketing efforts. Examples of market segmentation include categorizing consumers by age, income, lifestyle, or buying behaviors.

This concept plays a vital role in a market economy, where private enterprise and competition are key. In environments highly influenced by globalization and technology, market segmentation enables businesses to stand out and adapt in markets that are increasingly competitive and saturated with alternatives. Product differentiation is closely related to market segmentation, as it involves actions that firms take to make consumers perceive their products as distinct from competitors.