In the Context of the Strategies for Selecting Target Markets

question 32

Multiple Choice

In the context of the strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy?

• A)It results in market segments that are either too small or that shrink because of environmental changes.
• B)It often results in sterile, unimaginative product offerings that have little appeal to anyone.
• C)It results in cannibalization of products.
• D)It increases the production and marketing costs of a firm.

---

Definitions:

Cost of Goods Available

The total cost of inventory that is available for sale at the beginning of a period, including purchases made during that period.

Schedule of Cost

A detailed list showing the various components contributing to the total cost of manufacturing a product or providing a service.

Underapplied Manufacturing Overhead

The situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.