Market segmentation is defined as dividing a market into sub-groups based on some shared characteristic.

• A. True
• B. False
• C. Not always
• D. Only for B2B

Answer: (A)

Grouping a market into sub-groups that share a characteristic is exactly what segmentation is all about. This approach lets you tailor products, messages, and channels to each group because members of a segment are more similar to each other in ways that matter for buying decisions. The shared characteristic can be things like age, location, lifestyle, or how people use a product, among others. Because segmentation helps target marketing more effectively, the description is accurate. It applies to both consumer and business markets, not just B2B, and it isn’t about something that happens only sometimes—the defining idea is forming these sub-groups to guide targeted strategy.