Firms use a differentiated targeting strategy because
A) it is easier than mass marketing.
B) it helps 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 cater to the specific needs and preferences of different segments of the market, which can help them obtain a larger share of the overall market. By offering unique products or marketing messages to different segments, firms can differentiate themselves from competitors and gain a competitive advantage. This approach can be more effective than mass marketing, which attempts to appeal to all consumers with the same message or product. However, it does require more resources and effort to target multiple segments effectively.

Firms Use a Differentiated Targeting Strategy Because