Which of the following describes dividing potential customers into groups based on different characteristics?

Answer options:

Differentiation

Globalisation

Integration

Segmentation

How to approach this question

The question asks for the term that means dividing customers into groups. Consider the definitions of each of the options. "Segmentation" literally means to divide into segments or parts. This directly matches the description in the question.

Full Answer

D.Segmentation✓ Correct

The correct answer is D. Segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics.

Market segmentation is a marketing strategy that involves dividing a target market into smaller, more defined categories. It segments customers and audiences into groups that share similar characteristics such as demographics, interests, needs, or location. This allows businesses to target their marketing efforts more effectively.

Common mistakes

✗ Confusing segmentation with differentiation. Differentiation is about the product, while segmentation is about the customer.

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Which of the following describes dividing potential customers into groups based on different characteristics?

How to approach this question

Full Answer

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Practice the full AQA GCSE Business Paper 2

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