Firms that sell luxury products, custom-made products, and services (like wedding planners, home builders, etc) often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation

One to one marketing

Explanation:

One to one marketing refers to that form of marketing wherein the seller's focus is upon identifying and satisfying individual customer needs and creating products of value, tailor made for satisfying those needs.

Under such form of marketing, the seller stresses upon knowing individual choices and preferences and then serving the customer needs on individual or one to one basis.

One to one marketing is of two forms, personalization and customization. Under the former, the seller recommends products to customers based upon their past purchase history.

Under customization, the company provides an option to the customers to get a product customized as per their requirement and needs.