A large firm with ample resources wants to minimize the risk of "inviting" competitors to "chip away" at its target market(s). It has segmented its broad product-market and identified several homogeneous submarkets-each of which is large enough to offer attractive sales and profit potential. Which of the following approaches should the firm use?
A) Multiple target market approach
B) Mass marketing approach
C) Combined target market approach
D) Single target market approach
E) None of these approaches is correct.

Question

Quizplus · Accepted Answer

CThe multiple target market approach and the combined target market approach are both suitable for a large firm with ample resources that wants to minimize the risk of competitors entering its market. By targeting several homogeneous submarkets individually (multiple target market approach) or combining them into a larger, but still segmented, target market (combined target market approach), the firm can tailor its offerings to meet the specific needs of different customer segments, making it harder for competitors to find gaps in the market to exploit.

A Large Firm with Ample Resources Wants to Minimize the Risk