Which of the following is a primary benefit of industry classification systems for marketers?

• A. They help marketers identify and segment potential markets based on industry characteristics.
• B. They determine the pricing strategy for all products in the market.
• C. They guarantee increased sales for every classified industry.
• D. They eliminate the need for market research.

Answer: (A)

Verified step by step guidance

1. Understand the purpose of industry classification systems: These systems categorize businesses into groups based on similar characteristics, such as the type of products or services they offer.
2. Recognize that marketers use these classifications to analyze and understand different segments of the market, which helps in targeting specific groups effectively.
3. Identify that the primary benefit is related to market segmentation, where marketers can tailor their strategies to the needs and behaviors of particular industries.
4. Eliminate incorrect options by understanding that industry classification does not directly determine pricing strategies, guarantee sales, or replace market research.
5. Conclude that the main advantage is that industry classification systems help marketers identify and segment potential markets based on industry characteristics.