Question

Which of the following statements about target market is incorrect?

a)By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well.
b)A target market is a place within a larger market segment that represents a narrower group of customers with similar needs.
c)It's generally easier to find good information about a target market than an industry as a whole.
d)There is a distinct difference between a firm's industry and its target market.

Answer 1

The incorrect statement about target market is that by focusing on a target market, a firm can avoid head-to-head competition with industry leaders.

Step-by-step explanation:

The incorrect statement about target market is:

1. By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well.

The correct statements about target market are:

1. A target market is a place within a larger market segment that represents a narrower group of customers with similar needs.
2. It's generally easier to find good information about a target market than an industry as a whole.
3. There is a distinct difference between a firm's industry and its target market.

However, in the context of differentiated products, having a target market allows firms to create products that stand out due to unique physical aspects, location, intangible features, or public perception.