Question
The process of dividing a large market into smaller groups of consumers with similar needs or characteristics is known as: Market segmentation Product differentiation Targeting Positioning
Answer
4.7
(264 Votes)
Bertram
Elite · Tutor for 8 years
Answer
A
Explanation
In business terminology, the process referred to in the question is called 'market segmentation'. Market segmentation is a strategy where a large, homogeneous market is divided into identifiable segments or groups having similar needs, wants, or demand characteristics. Its objective is to design a specific marketing mix that precisely matches the needs of individuals in a selected segment. The other terms mentioned - product differentiation, targeting and positioning - are all different aspects of a marketing strategy. Product differentiation refers to the marketing process that showcases the differences between products. Targeting involves identifying potential customers to direct marketing efforts towards. Positioning is about establishing a unique selling proposition to identify how a brand or product is unique, making it stand apart from competitors.