BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Market segmentation requires creating subgroups of consumers which are similar to one another in important buying behavior characteristics. Correct.

Detailed explanation-2: -Markets can be segmented in several ways such as geographically, demographically, or behaviorally. Market segmentation helps companies minimize risk by figuring out which products are the most likely to earn a share of a target market and the best ways to market and deliver those products to the market.

Detailed explanation-3: -Which of the following statements is true of market segmentation? It helps marketers design marketing mixes that match the characteristics of the target market.

Detailed explanation-4: -Market segmentation depends on two levels − the strategic level and the tactical level. At a strategic level, it has a direct link with the decisions on positioning. At a tactical level, it relates with the decision of which consumer groups are to be targeted.

Detailed explanation-5: -In marketing, market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on shared characteristics.