Which of the following is a drawback of local marketing?
A) Local marketing increases manufacturing costs by reducing the economies of scale.
B) Local marketing requires specialization that is difficult to identify.
C) Local marketing is not profitable for most small firms.
D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy.
E) Local marketing almost always results in brand dilution.

Question

Quizplus · Accepted Answer

Local marketing often leads to a reduction in economies of scale, which can result in higher manufacturing costs. This is because the production process is tailored to the specific needs of a local market, which is generally smaller than a larger, national or international market. As a result, the cost per unit of the product tends to increase, which can make it less profitable for the firm.

Which of the Following Is a Drawback of Local Marketing