Predicting what types of bicycles different customers will want and deciding which of these customers the business will try to satisfy are activities a firm should do as part of

Are these your choices?

A. Production
B. A command economy
C. Marketing
D. Making goods or performing services

What do you think is the best answer?

Predicting what types of bicycles different customers will want and deciding which of these customers the business will try to satisfy are activities a firm should do as part of its market segmentation strategy.

Market segmentation is the process of dividing a broad target market into smaller, more manageable groups of consumers who have similar characteristics, needs, and buying behavior. By identifying and understanding these segments, a firm can tailor its marketing efforts to better meet the specific needs and preferences of each segment.

To carry out market segmentation, a firm should follow these steps:

1. Identify the target market: Determine the overall market that the firm wants to serve. This could be based on factors such as demographics (age, gender, income), psychographics (lifestyle, values), behavior (buying patterns), or geographic location.

2. Conduct market research: Gather data and information about the target market to understand their preferences, needs, and behaviors. This can include surveys, interviews, focus groups, or analyzing existing customer data.

3. Segment the market: Analyze the collected data to identify distinct groups or segments within the target market. These segments should have distinct characteristics and respond differently to marketing strategies.

4. Evaluate segment attractiveness: Assess the potential and profitability of each segment based on factors such as size, growth rate, competition, and compatibility with the firm's capabilities.

5. Select target segments: Choose one or more segments that align with the firm's objectives and resources. These segments should have the greatest potential for profitability and a good fit with the firm's offerings.

6. Develop marketing strategies: Create marketing strategies tailored to the preferences and needs of each selected segment. This could involve product customization, pricing strategies, targeted advertising, and distribution channels specific to each segment.

By predicting what bicycles different customers will want and deciding which customers to target, a firm can effectively allocate its resources, develop tailored marketing strategies, and ultimately increase customer satisfaction and profitability.