Electro Technologies, Inc. (ETI) has limited capital and wants to reduce the risk of competitors taking customers if it invests in a new product-market. Its broad product-market consists of three reasonably distinct submarkets. To identify a target market, ETI should probably focus on using the __________ approach.

Question

Quizplus · Accepted Answer

The single target market approach would allow ETI to focus its limited resources on one specific submarket and tailor its product and marketing efforts to meet the needs of that submarket. This would reduce the risk of competing with larger, more established companies in all three submarkets and improve the chances of successfully entering and penetrating the chosen target market.