In the context of the strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy?
A)It results in market segments that are either too small or that shrink because of environmental changes.
B)It often results in sterile, unimaginative product offerings that have little appeal to anyone.
C)It results in cannibalization of products.
D)It increases the production and marketing costs of a firm.

Question

Quizplus · Accepted Answer

An undifferentiated targeting strategy does not address the unique needs and preferences of different customer segments, resulting in generic and unappealing product offerings. This can lead to a lack of competitive advantage and difficulty in attracting customers. However, it does not necessarily result in market segments that are too small or that shrink, cannibalization of products, or increased production and marketing costs.

In the Context of the Strategies for Selecting Target Markets