Firms use a differentiated targeting strategy because
A) it is easier than mass marketing.
B) it helps to obtain a bigger share of the market.
C) it is better than focusing on individual or small groups of potential customers.
D) most market segments are too small to be profitable.
E) banks are more willing to extend credit to companies with this strategic approach.

Question

Quizplus · Accepted Answer

A differentiated targeting strategy allows firms to target multiple market segments with different products or services, which can help to obtain a bigger share of the overall market. This strategy is often more effective than mass marketing, where a single product is promoted to the entire market, as it allows firms to tailor their offerings to the specific needs and preferences of different customer groups. Additionally, focusing on individual or small groups of potential customers may limit a company's growth potential, while most market segments are actually large enough to be profitable through targeted marketing efforts. The availability of credit from banks is not directly related to a company's targeting strategy.

Firms Use a Differentiated Targeting Strategy Because