To be useful, a segmentation scheme must produce segments that: are divided acco

Question

To be useful, a segmentation scheme must produce segments that:

are divided according to the North American Industry Classification System.

are composed of people with different product needs.

are large enough to warrant developing and maintaining a special marketing mix.

are composed of people with different characteristics.

are divided according to the North American Industry Classification System.

are composed of people with different product needs.

are large enough to warrant developing and maintaining a special marketing mix.

are composed of people with different characteristics.

Explanation / Answer

The correct answer is option c.

Market segmentation or customer segmentation is the process of dividing the target market which is different from one another. It helps in creating the offer based on the needs of the customers with respect to their income, household composition, etc. It helps in identifying the correct segment for the product or services offered by the company which helps in creating effective market strategies for the group or groups. It is a creative process as it provides the marketers with the insight to meet their goals and objectives and also help in profitability.

The five requirements for effective market segmentation are: -

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