What is the purpose of market segmentation?
Understand the Problem
The question is asking about the reasons and benefits behind market segmentation in business strategy, which generally includes aspects such as targeting specific customer groups to better meet their needs and increase marketing effectiveness.
Answer
To group customers with similar attributes for targeted marketing and increased profitability.
The purpose of market segmentation is to group customers with similar attributes together so that businesses can understand their wants, needs, and behaviors to ultimately market to the segments that are most profitable.
Answer for screen readers
The purpose of market segmentation is to group customers with similar attributes together so that businesses can understand their wants, needs, and behaviors to ultimately market to the segments that are most profitable.
More Information
Market segmentation helps businesses tailor their products, services, and marketing strategies to specific groups, improving customer satisfaction and maximizing resource efficiency.
Sources
- What is the purpose of market segmentation? - kadence.com
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