Differences in customers’ buying habits, differences in their responses to the marketing mix of the companies direct companies to segment their markets according to the criteria specific for consumer and business markets. Hence, market segmentation is a process of dividing the market into smaller groups that the members of each group are similar to each other as well as their reactions to the marketing mix of the company, so the correct answer is A. The information about the other answer choices as follows: Following the segmentation process, companies need to select one or more market segments to serve as their target markets. Otherwise, it would be ineffective for companies to try reaching every market. For each target market, the company develops a market offering through positioning the product or service in the minds of the customers.

Market offering is defined as a mixture of products, services, information, ideas or experiences offered to a market in order to satisfy a need or want. Market offerings can be both products and services. From a broader perspective, persons, places, information, ideas and experiences can also be considered as market offerings.

Brand is defined as “a name, term, sign, symbol or design, or a combination of these”. Brand is perceived as an important component of a product or a service since it reflects the characteristics of the company and the product.