Why would a company adopt a differentiated targeting strategy when there are economies of scale benefits with an undifferentiated strategy?
A)Consumers choose amongst brands that are well known.
B)It can identify different segments with distinct needs.
C)Each competing brand has a distinctive image in the marketplace.
D)The company has the resources to offer several products at a variety of prices.
E)All of the above

Question

Quizplus · Accepted Answer

A differentiated targeting strategy allows a company to target different segments of the market with different products and marketing messages. This can be beneficial when there are economies of scale benefits with an undifferentiated strategy, as it allows the company to capture a larger share of the market by appealing to a wider range of consumers.

Why Would a Company Adopt a Differentiated Targeting Strategy When