Which of the following is an advantage of a multisegment targeting strategy
A)It significantly reduces the risk of product cannibalization
B)It provides economies of scale in manufacturing and marketing
C)It helps in satisfying the needs of a niche market
D)It decreases the costs involved in product design, marketing research, and management

Question

Which of the following is an advantage of a multisegment targeting strategy
A)​It significantly reduces the risk of product cannibalization
B)It provides economies of scale in manufacturing and marketing
C)It helps in satisfying the needs of a niche market
D)​It decreases the costs involved in product design, marketing research, and management

Quizplus · Accepted Answer

Multisegment targeting strategy allows a company to enter different market segments and tailor their products and marketing strategies to each of those segments. This can lead to economies of scale in manufacturing and marketing as the company can produce and promote products that are specific to each segment. This strategy can also help in satisfying the needs of different niche markets. However, it may increase the risk of product cannibalization and may require additional costs in product design, marketing research, and management.

Which of the Following Is an Advantage of a Multisegment