Question

As a company owner, you are trying to grow your party supply sales by reaching new customers. You know most of your customers are college students in their early 20s, but you conduct more research of your sales and discover customers who are business with events. This market is located within a 25 mile radius, they are mid- to small-sized companies with main holiday events and smaller birthday and retirement parties. You have just conducted customer:

a) targeting
b) segmentation
c) customization

Answer 1

Answer: Option (B) is correct.

In this particular case we have market segmentation. We divide the market and the consumer base, i.e. divide it based on the geography such as city, locality, district etc and on the basis on demography i.e. age.

In this case we have market which is located within radius of 25 miles, there are organizations which are either medium or small scale.