What Is the Purpose of Market Segmentation

question 111

Multiple Choice

What is the purpose of market segmentation?

• A) to group a large number of markets together enabling a company to serve them simultaneously
• B) to enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups
• C) to reduce the market down to a specific size that the firm can handle
• D) to divide the market into equal size and profit regions for sales territories

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Definitions:

Marginal Social Benefit

The additional benefit received by society from the consumption of one more unit of a good or service.

Public Park

A plot of land set aside by a government or community for recreational use by the public, often maintained with public funds.

Socially Optimum

A condition in economics where the allocation of resources maximizes the overall utility or welfare of society.

Socially Optimum

The ideal level of production or consumption from the perspective of society as a whole, where social welfare, including both costs and benefits, is maximized.