The Process of Arranging for a Product to Occupy a Clear

question 40

Multiple Choice

The process of arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is known as ________.

• A) market segmentation
• B) differentiation
• C) target marketing
• D) market targeting
• E) positioning

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Definitions:

Product Differentiation

The method of differentiating a product or service from its competitors in the marketplace to increase its appeal to a specific target audience.

Monopolistic Competitor

A firm operating in a monopolistic competition market, offering a unique product but competing with several other firms in terms of price, quality, and branding.

Elastic Demand Curve

A representation of the demand for goods or services that are very sensitive to changes in price, indicating that a small change in price leads to a large change in quantity demanded.

ATC Curve

A graph that represents the average total cost of production at different levels of output, typically U-shaped due to economies and diseconomies of scale.