Question

A business advantage of the concentrated targeting strategy for any company is that it

a) requires less market research and information.
b) requires less intensive analysis of customers' characteristics and needs.
c) allows a firm to utilize all of its production capacity.
d) maintains the firm's flexibility in moving into other market segments.
e) allows a firm to develop a special marketing mix for a single market segment.

Answer 1

The advantage of the concentrated targeting strategy is that it allows businesses to create a tailored marketing mix for a specific market segment, maximizing efficiency and effectiveness in meeting customer needs. The correct option is e)

Step-by-step explanation:

A business advantage of the concentrated targeting strategy for a company is that it allows a firm to develop a special marketing mix for a single market segment. Concentrating on one or a few products allows businesses to specialize in areas where they have a competitive or comparative advantage, optimizing the use of their skills, talents, and resources. By focusing on a niche market, companies can tailor their product offerings and marketing strategies to meet the specific needs and preferences of their targeted customers, leading to a more efficient use of resources and potentially higher rates of customer satisfaction and loyalty.