P&G Sells Six Brands of Laundry Detergent in the United

question 27

Multiple Choice

P&G sells six brands of laundry detergent in the United States,each designed for one of six laundry segments P&G has identified.Together,these six brands take 62% of market share.Which of the following is a disadvantage of P&G's differentiated marketing strategy?

• A)lost sales that would have been made with an undifferentiated marketing strategy across all segments
• B)other suppliers controlling pricing
• C)lack of resources to succeed in an attractive segment
• D)lost customer loyalty due to lack of brand loyalty
• E)increased costs for separate marketing plans for each brand

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Definitions:

Desired Margin

The target profit margin a company aims for in pricing its products or services.

Production Level

the quantity of goods and services produced by a business or economy within a certain period.

Perfectly Elastic

Describes a market condition where demand or supply responds instantaneously to changes in price with an infinite change in quantity demanded or supplied, depicted as a horizontal line in graphical analysis.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting consumer sensitivity to price changes.