There Are Five Steps Involved in Segmenting and Targeting Markets

question 11

Multiple Choice

There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories?

• A) Create product groupings.
• B) Identify market needs.
• C) Take marketing actions to reach target markets.
• D) Develop a market-product grid and estimate size of markets.
• E) Form prospective buyers into market segments.

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Definitions:

Moral Hazard

A situation in insurance and contracts where one party takes more risks because they know they are protected or that another party bears the costs of those risks.

Adverse Selection

A situation in financial markets where buyers and sellers have different levels of information, leading to transactions that favor the party with more or better information.

Adverse Selection

A situation where asymmetric information leads to the selection of poor risks, often seen in insurance markets.

Pre-contractual Problem

Issues that arise before the formation of a contract, often relating to the disclosure of information or negotiation terms.