What is the difference between differentiation and segmentation?
A)There is no difference between the two
B)Differentiation deals with "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 refers to a firm's strategy of creating a unique product or service that stands out from its competitors, while segmentation is the process of dividing the overall market into smaller groups of consumers with similar needs or characteristics. In other words, differentiation is about how a firm competes, while segmentation is about where it competes within the larger market. They are two distinct concepts in marketing strategy.

What Is the Difference Between Differentiation and Segmentation