Which of the following statements 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

Which of the following statements 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.

Quizplus · Accepted Answer

A concentrated targeting strategy involves focusing on one or a few well-defined market segments, rather than the entire market. This strategy is often adopted by small firms to compete effectively with larger firms that target a broader market. Option A is incorrect as a concentrated strategy focuses on only one or a few segments, not multiple segments at once. Option C is incorrect as a concentrated strategy is the opposite of a mass-market strategy. Option D is incorrect as cannibalization occurs when a new product from a company cuts into sales of its own existing product, which is not necessarily a result of a concentrated targeting strategy.

Which of the Following Statements Is True of a Concentrated