Which of the following is generally considered the first step in market segmentation?

• A. Identifying the total market and its potential customers
• B. Selecting target segments to serve
• C. Positioning the product within the chosen segment
• D. Developing a marketing mix for each segment

Answer: (A)

Verified step by step guidance

1. Understand that market segmentation is the process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.
2. Recognize that the first step in this process is to identify the total market and its potential customers, which means understanding the entire market landscape before breaking it down into segments.
3. This involves gathering data on all potential customers, their needs, preferences, and behaviors to get a comprehensive view of the market.
4. After identifying the total market, the next steps would be to select target segments to serve, position the product within those segments, and then develop a marketing mix tailored to each segment.
5. Therefore, the initial and crucial step is to clearly define and understand the total market and its potential customers before moving on to segmentation and targeting.