Final answer:
The concentrated target market approach is when a firm selects one homogeneous market segment as its target market.
Step-by-step explanation:
The target market approach where a firm selects one homogeneous market segment as its target market is known as the concentrated target market approach.
In this approach, the firm focuses all of its marketing efforts and resources on one specific segment of the market that it believes will be the most receptive to its product or service. This allows the firm to tailor its marketing strategies and messages to the specific needs and preferences of that particular segment.
By targeting a homogeneous market segment, the firm can develop a deeper understanding of the segment's characteristics, behaviors, and preferences, which can help in creating more effective marketing campaigns and building stronger customer relationships.