How is market segmentation useful to marketers?
What will be an ideal response?
ANSWER: Market segmentation is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. Market segmentation plays a key role in the marketing strategy of almost all successful organizations and is a powerful marketing tool for several reasons. Most important, nearly all markets include groups of people or organizations with different product needs and preferences. Market segmentation helps marketers define customer needs and wants more precisely. Because market segments differ in size and potential, segmentation helps decision makers to more accurately define marketing objectives and better allocate resources. In turn, performance can be better evaluated when objectives are more precise.
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Cutter's Catering Services advertises that they are the "friendliest caterers in town." Though their prices are no lower than the rates of competitors, they put a great deal of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer's expectations. Cutter's Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price cutting.
a. true b. false
Advertising, sales promotion, public relations, direct marketing, and personal selling are all parts of the ________
A) target market strategy B) pricing strategy C) product strategy D) promotional strategy E) distribution strategy