Final answer:
Canon pursued a combination segment policy by targeting multiple market segments, offering specialized marketing to appeal to both young replacement buyers and upscale first-time buyers of their AE-1 camera (c).
Step-by-step explanation:
When Canon, a camera manufacturer, targeted its AE-1 camera to young replacement buyers in Japan and upscale first-time camera buyers interested in 35 mm single-lens reflex cameras, they were probably pursuing a combination segment policy.
This segmentation strategy entails targeting multiple market segments with different marketing mixes catered to each. By doing this, Canon could appeal to both younger consumers looking to replace older camera models and to first-time buyers seeking a high-quality photography experience.