Final answer:
True, a firm that employs a concentrated targeting strategy focuses its marketing efforts on a specific market segment. This approach can be linked to a firm's core competency and can lead to success by better serving the needs of that segment.
Step-by-step explanation:
True, a firm using a concentrated targeting strategy indeed aims its marketing activities at one segment of a market. The objective of this approach is to focus on a specific group of consumers and tailor the product, pricing, distribution, and promotional efforts to those consumers specifically. By doing this, the firm can become a specialist, potentially gaining a competitive advantage within that segment. A similar pattern often operates within businesses, with those focusing on their core competencies—essentially concentrating on one or a few products that they do exceptionally well—tending to be more successful than those attempting to serve a wider market with a broad product range. This strategy is based on the belief that by serving the needs of one segment better than anyone else can, a business will retain loyal customers and achieve more efficient operations.