________ consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes?
Correct answer: B. Market segmentation
- A. Product differentiation
- B. Market segmentation
- C. Market targeting
- D. Market positioning
Explanation
Market segmentation divides a broad market into groups with distinct needs, characteristics, or behaviors that may require different products or marketing mixes. Targeting is the later decision about which of those segments to serve.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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