Why Would a Company Use the Undifferentiated Strategy

question 14

Multiple Choice

Why would a company use the undifferentiated strategy?

• A)The needs of individual consumers are dissimilar,and distinctive marketing mixes are required to satisfy them.
• B)The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market.
• C)The needs of individual consumers in the target market for a specific product are similar,so the organization can satisfy most customers with a single marketing mix.
• D)The undifferentiated strategy is expensive to implement but tends to produce the most sales.
• E)The undifferentiated strategy requires less time and fewer resources.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, expressed as an annual rate.

Par

The face value of a bond or stock, which is the amount the issuer agrees to pay back at maturity, often set at $100 for bonds.

SML Approach

Stands for Security Market Line, a graphical representation used in finance to demonstrate the relationship between risk and expected return of assets.

Systematic Risk

The risk inherent to the entire market or a market segment that cannot be mitigated through diversification, often influenced by factors like economic, political, and social changes.