Which of the following are true of market segmentation? (Check all that apply.)

Question

Multiple select question.

Segmentation organizes competitors into groups based on their similarities.

Market segmentation usually occurs after the firm develops a marketing mix.

A major reason for market segmentation is to help a manager truly understand customers.

Managers use segmentation to help them figure out which groups of customers to serve.

Answer 1

The following statements are true of market segmentation:

1. A major reason for market segmentation is to help a manager truly understand customers.
2. Managers use segmentation to help them figure out which groups of customers to serve.

The other statements are not accurate in the context of traditional market segmentation concepts. Market segmentation typically occurs before developing a marketing mix, and segmentation is focused on dividing the market based on customer characteristics or needs rather than organizing competitors.