Scenario 1-2
Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink on the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging.
-(Scenario 1-2)Chug Enterprises created the three products in a way that it appeals to separate target markets.This was done to prevent its products from competing with one another for market share.This shows that Chug Enterprises understands the importance of:

Question

Scenario 1-2
Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink on the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging. 
-(Scenario 1-2)Chug Enterprises created the three products in a way that it appeals to separate target markets.This was done to prevent its products from competing with one another for market share.This shows that Chug Enterprises understands the importance of:

Quizplus · Accepted Answer

Chug Enterprises is using internal positioning by differentiating its products to appeal to different target markets, thus avoiding competition among its own products.

Scenario 1-2 Chug Enterprises Is Planning to Create a New Line of Line