Question: Which of the following best describes the term \'market segmentation\'?

Options:

1. Dividing a market into distinct groups of buyers
2. Analyzing competitors\' market share
3. Creating a single marketing strategy for all customers
4. Identifying the target market for a new product

Correct Answer: Dividing a market into distinct groups of buyers

Solution:

Market segmentation involves dividing a market into distinct groups based on various criteria.