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 best choice for ETI would be to use the single target market approach, which involves selecting one specific submarket to focus on. This approach allows ETI to allocate its limited resources more effectively and reduces the risk of competitors taking customers. By focusing on one submarket, ETI can tailor its product and marketing efforts to meet the specific needs and preferences of that market. This approach may also allow ETI to establish a strong foothold in a specific market before expanding to others.