Businesses must focus on fewer customer segments and serve them well with fewer brands, otherwise they face
A) increased competition.
B) increased distribution.
C) escalating costs.
D) smaller product development budgets.
E) smaller marketing communications budgets.

Question

Quizplus · Accepted Answer

Serving too many customer segments with too many brands can lead to escalating costs, including increased marketing and advertising expenses, inventory costs, and production costs. Focusing on fewer customer segments and brands can help a business streamline its operations and reduce costs.

Businesses Must Focus on Fewer Customer Segments and Serve Them