Question

Given below are two statements:
Statement I : Dividing the market in small niches is known as targeting.
Statement II: Segmentation and targeting are essential components of understanding the market and tap it effectively.
In the light of the above statements,choose the correct answer from the options given below

• A. Both Statement I and Statement II are true
• B. Both Statement I and Statement II are false
• C. Statement I is true but Statement II is false
• D. Statement I is false but Statement II is true

Answer 1

The Correct Option is D

To determine the correct answer, we need to analyze both statements individually:

1. Statement I: "Dividing the market in small niches is known as targeting."
   
   • Explanation: Targeting, in marketing terms, actually refers to choosing a specific segment of the market to concentrate marketing efforts on. However, "dividing the market into small niches" is related to segmentation, not targeting. Segmentation is the process of dividing the broad market into smaller segments or niches based on certain criteria such as demographics, psychographics, or behavior.
   • Conclusion: Thus, Statement I is false.
2. Statement II: "Segmentation and targeting are essential components of understanding the market and tap it effectively."
   
   • Explanation: Segmentation and targeting are indeed crucial stages in marketing strategy. Segmentation involves dividing the market into distinct groups with common needs, and targeting involves deciding which of these segments to focus on. Both are vital for efficiently addressing customer needs and optimizing marketing resources.
   • Conclusion: Therefore, Statement II is true.

Based on the analysis above, the correct answer is: Statement I is false but Statement II is true.