Question

Firms try to differentiate themselves from one another. For instance, Busch Light is cheap and barely advertises, while Michelob Ultra is more expensive and advertises toward active young professionals. This differentiation is called...

Answer 1

Targeting

Step-by-step explanation:

These two firms are in business however, one of them has identified a target market while the other, does not employ advertisement and simply makes their product cheaper.

Targeting is a strategy used by firms to identify the audience their goods and services are aiming at, creating a focus for advertisement and brand upgrade. Targeting, creates direction in a business however, if the targeting is done in such a way that is becomes too limiting, profit could become limited because there is only one audience goods and services are directed at.

Making a product cheaper, could attract people with lower income however, a lack of advertisement is detrimental to the company as the lack of familiarity with the name of the brand, is another way customers could drift from the brand.