Question

Which of the following statements is true of a concentrated targeting strategy?

A. It results in cannibalization of products.
B. It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
C. It is often adopted by small firms to compete effectively with much larger firms.
D. It allows a firm to serve two or more well-defined market segments simultaneously.

Answer 1

A concentrated targeting strategy is often adopted by small firms to compete effectively with much larger firms. This strategy allows a firm to serve one or a few well-defined market segments simultaneously and tailors products or services to meet the needs of that segment.

Step-by-step explanation:

A concentrated targeting strategy is often adopted by small firms to compete effectively with much larger firms. By focusing on a specific market segment and tailoring their products or services to meet the needs of that segment, small firms can carve out a niche and establish a strong competitive advantage.

For example, a small organic skincare company might target health-conscious consumers who prioritize natural ingredients. By concentrating their efforts on this specific segment, the company can create products that appeal directly to their target customers and differentiate themselves from larger, more generalized skincare brands.

This strategy allows a firm to serve one or a few well-defined market segments simultaneously, rather than trying to appeal to a broad mass market. By understanding the specific needs and preferences of their target customers, firms can deliver products and marketing messages that resonate more strongly and generate higher sales and customer loyalty.