Which term describes dividing a market into groups with similar characteristics?

Which term describes dividing a market into groups with similar characteristics?

• A. Extension Strategies
• B. The Marketing Mix
• C. Market Segmentation
• D. Primary Research

Answer: (C)

Dividing a market into groups with similar characteristics is market segmentation. This approach helps a business tailor its products, prices, promotions, and distribution to meet the specific needs of each group, making marketing more precise and effective. For example, a phone brand might segment by age or usage patterns and craft different messages or models for each group. The other terms refer to different ideas: extension strategies are about growing into new markets or product areas; the marketing mix is the combination of product, price, place, and promotion used to reach customers; primary research is gathering new data directly from the market. The main idea here is to group customers so marketing efforts can be directed where they’ll have the biggest impact.

Dividing a market into groups with similar characteristics is market segmentation. This approach helps a business tailor its products, prices, promotions, and distribution to meet the specific needs of each group, making marketing more precise and effective. For example, a phone brand might segment by age or usage patterns and craft different messages or models for each group. The other terms refer to different ideas: extension strategies are about growing into new markets or product areas; the marketing mix is the combination of product, price, place, and promotion used to reach customers; primary research is gathering new data directly from the market. The main idea here is to group customers so marketing efforts can be directed where they’ll have the biggest impact.