Final answer:
Differentiated marketing is a strategy where a firm targets multiple market segments with specific offerings, not just one segment as the question posits. Product differentiation involves actions to make a product appear unique from competitors, which can include various strategies like distinctive physical features, location, and brand perception.
Step-by-step explanation:
The statement you provided is actually not true; differentiated marketing refers to a strategy where a firm targets several market segments with a different offering for each. It's not about focusing on a single segment, but rather addressing multiple segments with tailored marketing mixes designed to suit the specific needs and preferences of each segment. On the other hand, concentrated marketing is where a firm directs its efforts towards one particular market segment.
Product differentiation is any action that firms undertake to make consumers perceive their products as different from those of their competitors. This could be through variations in physical aspects of the product, the location from where it is sold, intangible aspects, or perceptions of the brand. Differentiation is crucial in monopolistic competition, where the diversity of products based on style, flavor, location, and other attributes leads to a distinction among competitors.
Firms may work on creating a strong brand and customer perception, which is particularly important in an oligopoly market structure, where few companies dominate the industry. Successful differentiation can often require substantial investment in advertising and marketing to create a recognizable brand. This can be a significant challenge when competing against well-established brands.