Arrange the following steps in the segmentation process in sequential order:

(A) Determine which demographics, life styles and usage behaviour make the segment distinct and actionable

(B) Create a "value proposition" and product-price positioning strategy for each segment

(C) Group customers into segments based on similar needs and benefits sought by them

(D) Determine overall attractiveness of each segment based on some predetermined criteria

(E) Create 'segment story board' to list the attractiveness of each segment's positioning strategy

Choose the correct answer from the options given below:

The correct answer is (C), (A), (D), (B), (E)

Key Points 

Market Segmentation: 

• Market Segmentation is the term given to the grouping of customers with similar needs by a number of different variables.
• Once this has been done, segments can be targeted by a number of targeting strategies.
• The stage that then follows is known as positioning which is the place that products or services occupy in the marketplace in relation to the competition, as perceived by the target market.
• The underlying principle of market segmentation is that individual customers have different product and service needs.
• Mass marketing, the marketing of a single product to everyone, is rarely a viable strategy, just as it is to customize products to an individual.

Important Points

Steps in Segmentation Process: 

(C) Group customers into segments based on similar needs and benefits sought by them

(A) Determine which demographics, lifestyles, and usage behavior make the segment distinct and actionable

(D) Determine the overall attractiveness of each segment based on some predetermined criteria

(B) Create a "value proposition" and product-price positioning strategy for each segment

(E) Create a 'segment storyboard' to list the attractiveness of each segment's positioning strategy

Hence, the correct answer is (C), (A), (D), (E), (B).