What is the primary purpose of market segmentation?

 

1. What is the primary purpose of market segmentation?

A) To increase production costs
B) To divide a large market into smaller, more manageable groups
C) To reduce the number of products offered
D) To eliminate competition

✅ Correct Answer: B) To divide a large market into smaller, more manageable groups

The primary purpose of market segmentation is to identify and group customers with similar characteristics, needs, or behaviors so that a business can develop more targeted and effective marketing strategies. This approach allows companies to better satisfy customer demands, optimize resource use, and gain a competitive advantage.