Which of the following best describes market segmentation?

Market segmentation refers to the process of dividing a broader market into smaller, more defined categories or segments based on shared characteristics. This can include demographics, psychographics, geographic locations, or behavioral traits. By identifying a specific set of customers to target, businesses can tailor their marketing strategies and products to meet the unique needs and preferences of those segments. This allows for more personalized communication, effective use of resources, and ultimately, a higher chance of converting potential customers into loyal clients.

The other options do not accurately describe market segmentation. Offering the same product to all consumers does not take into account the diverse preferences and needs in a market, which is contrary to the principle of segmentation. Reducing prices to attract more customers does not involve a strategic understanding of customer characteristics, and it may undermine the perceived value of the product rather than segmenting the market effectively. Increasing product features to capture attention may appeal to some customers but does not necessarily address segmentation or the targeted approach to different market segments. Therefore, targeting specific sets of customers through market segmentation is key to effective marketing strategies.