Final answer:
In a differentiated marketing strategy, marketers develop unique marketing mixes for different consumer segments to meet specific needs, which is especially relevant in a market-oriented economy with monopolistic competition.
Step-by-step explanation:
In a differentiated marketing strategy, a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs. This approach is in contrast to a mass or undifferentiated strategy, where the same product and marketing mix are offered to the entire market, and a concentrated strategy, where the focus is on just one segment of the market.
The debate over whether a market-oriented economy produces the optimal amount of variety relates to how different marketing strategies might appeal to consumers with a wide range of preferences. Critics argue that the cost of high product differentiation can be socially wasteful, suggesting that consumers might be as satisfied with less variety. However, defenders contend that consumers benefit from the differentiated products that result from firms seeking profits in a market-oriented economy. This is reflective of a monopolistic competition scenario, where many firms compete with differentiated products.