The process of categorizing customers into distinct groups based on characteristics and wants is called?

• A. Targeting
• B. Positioning
• C. Segmentation
• D. Differentiation

Answer: (C)

Segmentation is the process of dividing a market into distinct groups of customers who share similar characteristics and needs. This allows a business to tailor its marketing efforts to each group rather than treating all customers the same. Once segments are identified, the next steps typically involve targeting (choosing which segments to pursue), positioning (how the product is perceived in those segments), and differentiation (making the product stand out). So categorizing customers into distinct groups based on their characteristics and wants is segmentation.