Which of the following is true of a concentrated targeting strategy?
a. It allows a firm to serve two or more well-defined market segments simultaneously.
b. It is often adopted by small firms to compete effectively with much larger firms.
c. It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
d. It often results in cannibalization, which occurs when sales of a new product cuts into sales of an existing product.
ANSWER: b
Small firms often adopt a concentrated targeting strategy to compete effectively with much larger firms. In a concentrated targeting strategy, a firm selects a market nicheâ€"one segment of a marketâ€"for targeting its marketing efforts.
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