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Creating a strategy is dividing customers into groups with similar characteristics

Option 1: True
Option 2: False

User Hook
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1 Answer

5 votes

Final answer:

The given statement is true in the context of market segmentation, which is a part of creating a business strategy, but it is not the entirety of a business strategy.

Step-by-step explanation:

The statement 'Creating a strategy is dividing customers into groups with similar characteristics' can be considered as a simplified explanation of what businesses often do as part of their market segmentation strategy. However, this statement misrepresents the true complexity of creating a business strategy. It's true that grouping customers with similar characteristics is a part of strategizing, specifically known as market segmentation, where a company divides the larger market into smaller groups to tailor specific marketing messages or products to these individual segments.

However, creating a comprehensive business strategy involves much more than segmentation alone. It includes setting goals, analyzing competitive environments, and developing a cohesive plan that encompasses various aspects of the business including operations, finance, marketing, and more. Therefore, while the classification and division into groups is a component of strategy, it is not the whole strategy itself.

The fact that division of customers into groups is part of a strategy is true, but the statement is overly simplistic as business strategy encompasses a broader range of activities and decisions. Market segmentation by itself does not constitute the entirety of a business strategy.

User Gene Reddick
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