CLEP Marketing Practice Exam 2026 – All-in-One Guide to Achieve Top Scores!

In the context of market segmentation, the seven steps typically involve defining the market, segmenting the market into distinct groups based on certain criteria, and then evaluating those segments to determine the best target markets. The process focuses on identifying consumer needs and behaviors, which helps companies tailor their marketing strategies effectively.

The option related to "Fund competitors" does not fit into the framework of market segmentation steps. Instead, the segmentation process revolves around understanding consumer groups and their preferences rather than analyzing competitors' funding or financial status. Market behavior evaluation, product naming, and estimating segment sizes are all essential elements in this process that help in characterizing the market landscape and making informed decisions regarding product offerings and marketing strategies.

Thus, recognizing the critical steps that contribute directly to segmentation is fundamental, and analyzing competitor funding does not play a direct role in identifying market segments.