GENERAL KNOWLEDGE

Detailed explanation-1: -Data sources for segmenting businesses and consumers tend to be the same. Most markets are comprised of customers whose tastes are very similar. As an entrepreneurial marketer, it is important to understand the demographics of the market in which you intend to operate.

Detailed explanation-2: -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-3: -Demographic segmentation is one of the simple, common methods of market segmentation. It involves breaking the market into customer demographics as age, income, gender, race, education, or occupation. This market segmentation strategy assumes that individuals with similar demographics will have similar needs.

Detailed explanation-4: -Demographic segmentation variables are among the most popular bases for segmenting customer groups because demographic data are plentiful and customer wants and needs often link closely to these variables.

Detailed explanation-5: -Segments become more homogeneous as they increase in size. A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view. Some companies that tried mass customization have scaled back their attempts because it is not cost-effective.