A Disadvantage of the Concentrated Targeting Strategy Is That

question 87

Multiple Choice

A disadvantage of the concentrated targeting strategy is that

• A) the firm's financial condition is tied to a single and specialized marketing mix.
• B) large sales volumes cannot be generated.
• C) production costs may be higher than with other strategies.
• D) marketing personnel may become dissatisfied with the limited opportunities provided by this approach.
• E) marketing costs are often higher than for other strategies.

---

Definitions:

Competitive Buyer

A buyer in a market who has no influence on the market price and must accept the market price as given.

Marginal Expenditure Curve

Curve describing the additional cost of purchasing one additional unit of a good.

Factor of Production

An economic resource that is used to produce goods and services, including land, labor, capital, and entrepreneurship.

Average Expenditure Curve

Supply curve representing the price per unit that a firm pays for a good.