Question

Which of the following is a criterion used in forming market segments?

Answer 1

Answer:

The correct option is "C" which is "there are differences of needs of buyers within segments."

Explanation:

A market segment is a group of people who have one or more common features, merged for marketing purposes. Each market segment has its pecularities and the marketers adopt different types of criteria to create a target market for their product or service.

There are five criteria used in forming Market segments, They include

(1) Potential for increased profit;

(2) Similarity of needs of potential buyers within a segment;

(3) Difference of needs of buyers among segments;

(4) Potential of a marketing action to reach a segment;

(5) Simplicity and cost of assigning potential.

There are differences of needs of buyers within segments means that buyers have variety of needs among the market segements. They have varying choices to make within the segments.

Answer 2

Answer:

Letter E is correct. There is potential for a marketing action to reach a segment.

Explanation:

The most appropriate alternative to answer this question is the letter E, because to form market segments, it is necessary to have a marketing action to reach a segment.

Because segmentation marketing consists of identifying in a market with various types of individuals, groups that have the same preferences and responses in relation to products and services. Therefore, it is necessary for the organization to adopt an action plan that helps in dividing the market by groups according to similarities, preferences and needs so that the company's future marketing campaigns can be more targeted and effective in winning over the target audience.