Market segmentation divides a market into groups based on characteristics such as gender, age and geography. Which of the following is an example basis for segmentation?

• A. Gender
• B. Age
• C. Geography
• D. Product Life Cycle

Answer: (C)

Segmentation bases are the characteristics marketers use to divide a market into groups of buyers with similar needs. Geography is an example because it groups people by location—such as region or city—and people in different places can have different needs, climates, or preferences. This allows a business to tailor its products, pricing, and promotions to specific locations. Product Life Cycle, on the other hand, relates to how a product develops over time from launch to decline, not to how buyers are grouped, so it isn’t used as a basis for segmentation. (Gender and age are also common bases, but the option illustrating a segmentation basis here is geography.)