Paper 1 · Market segmentation
The sub-division of a large, heterogeneous market into sub-markets of customers with broadly similar needs is called ___.
Model answer
market segmentation
Also accepted: segmentation
Explanation: Market segmentation splits a broad market into groups of customers with similar needs, such as different schools with different uniform specifications, so a business can target its resources at each group more precisely.
Derived from ZIMSEC Business_studies Paper 1, June 2019, Q4
