A Disadvantage of the Concentrated Targeting Strategy Is That

question 53

Multiple Choice

A disadvantage of the concentrated targeting strategy is that:

• A)the firm's financial condition is tied to a single and specialised 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:

Zero Marginal Cost

A situation where producing one additional unit of a good or service does not increase the total cost of production.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Patent

A form of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a certain number of years.

Pigeon Pies

Traditional British pies made with pigeon meat, often served as a game dish.