Question

Process that cluster people with similar needs is called

Answer 1

The correct answer is - Segmenting.

Segmenting is an aggregating process that involves clustering people with similar needs into a "market segment."

A market segment is a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.

The customers in a market segment should be as similar as possible in respect to their likely responses to marketing mix variables and their segmenting dimensions.

Answer 2

Process that clusters people with similar needs is called segmenting. It is an aggregating process which involves clustering the people with similar needs into a 'market segment'.

While dividing or segmenting markets researchers look for common characteristics like shared needs, similar lifestyles, common interests, and similar demographic profiles. The goal of segmentation is to identify the most profitable segments so that they can be given special attention and made the target markets.