In the context of business planning, what does the term 'market segmentation' refer to?
Practice Questions
1 question
Q1
In the context of business planning, what does the term 'market segmentation' refer to?
Dividing a market into distinct groups of buyers
Creating a single marketing strategy for all customers
Analyzing competitors' market share
Identifying potential investors
Market segmentation involves dividing a market into distinct groups of buyers with different needs or characteristics to tailor marketing strategies.
Questions & Step-by-step Solutions
1 item
Q
Q: In the context of business planning, what does the term 'market segmentation' refer to?
Solution: Market segmentation involves dividing a market into distinct groups of buyers with different needs or characteristics to tailor marketing strategies.
Steps: 5
Step 1: Understand that a market is made up of many potential customers.
Step 2: Recognize that these customers have different needs, preferences, and characteristics.
Step 3: Learn that market segmentation is the process of dividing the overall market into smaller groups based on these differences.
Step 4: Identify that each group, or segment, can be targeted with specific marketing strategies that cater to their unique needs.
Step 5: Realize that this helps businesses to be more effective in reaching and satisfying their customers.
