Marketing Synergies Often Come at the Expense of Product Synergies

question 54

Multiple Choice

Marketing synergies often come at the expense of product synergies because

• A)product synergies are more effective for penetrating a market rather than creating a new one.
• B)a multiple market segment would usually require multiple products.
• C)it is easier to change a product than to completely build a new marketing plan.
• D)a single customer segment will likely require a variety of products.
• E)no company can afford to do both at the same time.

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Definitions:

Market Equilibrium

A state in which market supply and demand are balanced at a certain price level, leading to economic stability in which the quantity supplied equals the quantity demanded.

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a price decrease.

Excess Demand

A situation in which the demand for a product or service surpasses its supply in a market, often leading to price increases.

Market Equilibrium

A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price level.