Question

Vicki is an independent insurance agent who has seen little increase in her revenues over the last two years. Her main marketing efforts have been mass mailings on a regular basis, but these have seen little response. She takes a marketing class and learns about segmentation. She calls and talks with her current clients and identifies most are over the age of 40, own two cars and a home, and have at least two children. Vicki strategizes the types of marketing campaigns to effectively reach these current and potential customers like her current clients. Vicki used segmentation identification to meet which of its objectives?A.) increasing marketing effciency by directing efforts toward general market segments
B.) reduced company risk by deciding where when how and whom a product service or brand will be marketed
C.) identifying but not classifying people into comparable groups.

Answer 1

Answer:

Letter B is correct. Reduced company risk by deciding where when how and whom a product service or brand will be marketed.

Explanation:

Marketing segmentation can be defined as a marketing strategy to identify groups of people with preferences and similarities in the response and choice of products or services.

Therefore, by segmenting the market, Vick reduced the company's risk, as it was able to identify its types of potential customers and the similarities between them, in order to develop a more specific marketing plan that understands and meets their needs and desires. With market segmentation, it is possible for a company to adjust its product and distribution channel, develop more efficient campaigns, increase market share, meet its consumer and satisfy its needs.