Which of the following is true about the concentrated marketing strategy?
A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour.
B) Concentrated marketing is not profitable for most firms.
C) Niche marketing involves few risks for most firms.
D) Concentrated marketing involves going after a small share of a large market.
E) The Internet has limited the use and benefits of niche marketing.

Question

Quizplus · Accepted Answer

The concentrated marketing strategy is also known as niche marketing, which involves targeting a specific segment of customers with specialized products or services. While this strategy can lead to higher profit margins and customer loyalty, it also involves significant risks. Companies that rely on a few segments for all of their business will suffer if a segment turns sour, as they have limited diversification. Therefore, choice A is true, and the other choices are incorrect.

Which of the Following Is True About the Concentrated Marketing