What term describes dividing a market into groups based on variables such as age, gender, education, family size, occupation, and income?

What term describes dividing a market into groups based on variables such as age, gender, education, family size, occupation, and income?

• A. Market segmentation
• B. Target market
• C. Behavioral analysis
• D. Customer profiling

Answer: (A)

Dividing a market into groups based on demographic variables like age, gender, education, family size, occupation, and income is market segmentation. This approach groups people who share similar characteristics to tailor products, messages, and channels to each group, making marketing more effective. The other terms describe different ideas: a target market is the specific segment a company chooses to pursue after segmentation; behavioral analysis focuses on how consumers act and decide, not just how they’re grouped; customer profiling (personas) builds a detailed picture of a typical customer, which comes after segmentation to represent a segment.

Dividing a market into groups based on demographic variables like age, gender, education, family size, occupation, and income is market segmentation. This approach groups people who share similar characteristics to tailor products, messages, and channels to each group, making marketing more effective. The other terms describe different ideas: a target market is the specific segment a company chooses to pursue after segmentation; behavioral analysis focuses on how consumers act and decide, not just how they’re grouped; customer profiling (personas) builds a detailed picture of a typical customer, which comes after segmentation to represent a segment.