Firms Use a Differentiated Targeting Strategy Because

question 31

Multiple Choice

Firms use a differentiated targeting strategy because

• A) it is easier than mass marketing.
• B) it helps to obtain a bigger share of the market.
• C) it is better than focusing on individual or small groups of potential customers.
• D) most market segments are too small to be profitable.
• E) banks are more willing to extend credit to companies with this strategic approach.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price of those goods.

Equilibrium Price

The price at which the quantity of a product demanded equals the quantity supplied.

Sellers

Entities or individuals who provide products or services for purchase in the market.

Market Equilibrium

A state where supply equals demand, resulting in stable prices and quantities in the marketplace.