What is the difference between differentiation and segmentation?
A)There is no difference between the two
B)Differentiation deals with the "how" a firm chooses to compete,while segmentation describes "where" in the entire market a firm chooses to compete
C)Differentiation is a firm's strategic choice,whereas segmentation is given by its environment
D)Segmentation is the head of the marketing department's responsibility,whereas the CEO is in charge of differentiation

Question

Quizplus · Accepted Answer

Differentiation is focused on how a company chooses to compete in the market, typically through product or service differentiation. Segmentation, on the other hand, refers to the process of dividing the market into unique groups of consumers with similar needs or characteristics. Segmentation helps companies determine where they should compete in the market, while differentiation helps them determine how to compete within that selected market segment.

What Is the Difference Between Differentiation and Segmentation