What term describes a specific group of consumers with similar wants and needs?

What term describes a specific group of consumers with similar wants and needs?

• A. Target Market
• B. Market Segment
• C. Mass Market
• D. Niche Market

Answer: (A)

The key idea is how a business identifies precisely who to serve by dividing the market into groups and then choosing one to focus on. A market segment is a group of consumers with similar wants and needs, identified through segmentation. The business then selects one of these segments as its target market—the specific group it will tailor its product and marketing to meet. So the term that describes that particular, chosen group is the target market. It’s the difference between describing the group (market segment) and naming the exact group the company commits to serving (target market). The other terms describe different ideas: a market segment is the group itself, a mass market is no segmentation at all, and a niche market is a small, highly specialized segment.

The key idea is how a business identifies precisely who to serve by dividing the market into groups and then choosing one to focus on. A market segment is a group of consumers with similar wants and needs, identified through segmentation. The business then selects one of these segments as its target market—the specific group it will tailor its product and marketing to meet. So the term that describes that particular, chosen group is the target market. It’s the difference between describing the group (market segment) and naming the exact group the company commits to serving (target market). The other terms describe different ideas: a market segment is the group itself, a mass market is no segmentation at all, and a niche market is a small, highly specialized segment.