Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?
A) Will our new products steal customers or sales from our older ones?
B) Will the products compete head-to-head with those of a competitor?
C) Can this action successfully draw customers away from competitors?
D) Are there enough similarities within the market segment to warrant such high costs?
E) Will this action eliminate the need for individualized advertising and promotion?

Question

Quizplus · Accepted Answer

Marketers should consider whether new products will take away sales from their existing products, which is the essence of cannibalization.

Suppose Marketers Want to Use Product Differentiation and Market Segmentation