19) The process of naming broad product-markets and then segmenting them in order to select target markets and develop suitable marketing mixes is called:
A.
Market research.
B.
Market development.
C.
Market penetration.
D.
Market segmentation.
What do you think?
The correct answer is D. Market segmentation.
To arrive at this answer, we need to understand the process described in the question. The question states that this process involves naming broad product-markets and then segmenting them to select target markets and develop marketing mixes.
Market research (option A) refers to the process of gathering information about the market, customers, and competitors. While market research is an important component of the overall process, it does not specifically address the naming and segmentation of product-markets.
Market development (option B) refers to entering new markets with existing products. This involves expanding the reach of a product into new geographic regions or customer segments. It does not involve the naming and segmentation of product-markets.
Market penetration (option C) refers to increasing market share for existing products or services in existing markets. It involves tactics such as pricing strategies, promotions, and improvements to product offerings. It does not involve the initial naming and segmentation of product-markets.
Market segmentation (option D) is the correct answer. This process involves dividing a broad product-market into smaller, distinct segments based on characteristics such as demographics, psychographics, or behaviors. This segmentation allows marketers to understand the needs and preferences of different customer groups and develop targeted marketing strategies for each segment. Naming the broad product-market and then segmenting it is a fundamental step in the market segmentation process.