An apparel company, manufactures clothes for men, women, and children. It furtherdivides its core customers on the basis of demographic variables such as income, ethnic background, and family life cycle. These divisions are known as

An apparel company, manufactures clothes for men, women, and children. It further divides its core customers on the basis of demographic variables such as income, ethnic background, and family life cycle. These divisions are known as market segments.

Explanation:

Market segmentation is the process of dividing the customer on the basis of their background, income and family life cycle. The segmented groups of customer will more likely react similar to the marketing strategy of the company.

Market segmentation are classified as as follows:

i)Psychographic segmentation

ii)Demographic segmentation

iii)Geographic segmentation

iv)Behavioral segmentation

Market segmentation helps the company to retain more customers and increase their profit. In the above scenario, the apparel company follows demographic segmentation to divide its customers.

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