Which of the following is true of a concentrated targeting strategy?
A)It allows a firm to serve two or more well-defined market segments simultaneously.
B)It is often adopted by small firms to compete effectively with much larger firms.
C)It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
D)It often results in cannibalization,which occurs when sales of a new product cuts into sales of an existing product.

Question

Quizplus · Accepted Answer

A concentrated targeting strategy focuses on serving a single, well-defined market segment. This is often adopted by small firms to compete effectively with larger firms who adopt a mass-market philosophy. Option A refers to a differentiated targeting strategy, not a concentrated one. Option C is incorrect as a concentrated targeting strategy recognizes and targets individual segments. Option D is incorrect as cannibalization is a risk of a product line extension strategy, not a targeting strategy.

Which of the Following Is True of a Concentrated Targeting