Suppose Marketers Want to Use Product Differentiation and Market Segmentation

question 50

Multiple Choice

Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?

• A) Will our new products steal customers or sales from our older ones?
• B) Will the products compete head-to-head with those of a competitor?
• C) Can this action successfully draw customers away from competitors?
• D) Are there enough similarities within the market segment to warrant such high costs?
• E) Will this action eliminate the need for individualized advertising and promotion?

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Definitions:

Organizational Structure

The framework around which an organization’s operations are built, defining roles, responsibilities, and the hierarchy within the company.

Paper Manufacturer

A company or entity engaged in the production of paper products, from raw materials to finished goods.

Forestry Company

A business involved in the cultivation, maintenance, conservation, and management of forests for resources such as timber.

Vertical Integration

An approach in which a firm grows by incorporating various stages along the same production line, including situations where a producer controls its supply source and/or its distribution channel.