Marketers Must Consider the Advantages and Disadvantages of Each Marketing

question 151

Multiple Choice

Marketers must consider the advantages and disadvantages of each marketing strategy as they choose which one is the best fit for their firm. You have chosen to market your company's product using a differentiated marketing strategy. What disadvantage will you face?

• A) Your mass marketing approach may put you out of touch with today's consumer.
• B) Your marketing costs will be higher.
• C) Your direct competition may appeal to your very narrow niche market in a similar manner.
• D) Your firm may lose sight of other larger and more profitable markets.
• E) Your mass marketing approach may not appeal to smaller market segments.

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Definitions:

Beta

An indicator of how much the risk or instability of a security or portfolio deviates from the broader market.

Standard Deviation

A statistical measure of the dispersion of a set of data points from their mean, widely used in finance to quantify the variability of returns.

Required Return

The minimum expected return an investor demands for investing in a particular asset, considering the risk involved.

Correlation Coefficients

Statistical measures that indicate the extent to which two variables fluctuate together.