A Differentiation Strategy Works Best When

question 45

Multiple Choice

A differentiation strategy works best when

• A)buyers' needs are homogeneous.
• B)many rival firms are also pursuing a differentiation approach.
• C)firms have ample excess cash to invest in R&D activities.
• D)there are few other ways to make a product unique to buyers.
• E)technological change is fast-paced and competition revolves around rapidly evolving product features.

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Definitions:

Controllable Factors

Elements in marketing and business that can be directly managed or influenced by a company, such as product development, pricing, and distribution strategies.

Administrative Forces

Refers to regulatory measures and government laws that affect how businesses operate within a given jurisdiction.

Marketing Mix

The combination of strategies involving product, price, distribution, and promotion that a company employs to effectively market its goods or services.

Communication

The act of transferring information, ideas, or feelings between individuals or groups using spoken words, written text, or other symbols.