What can be said of the level of competition when selecting a target market?
A)The more competitors there are within a segment, the less of a chance there is for price wars.
B)A market segment is less attractive to marketers if there are only a few competitors for that segment.
C)The more competitors there are within a segment, the less a company will have to spend to reach out to consumers.
D)The more intense the competition within a segment, the more attractive it is to marketers.
E)The more competitors there are, the more a firm will have to invest in promotion to increase market share.

Question

Quizplus · Accepted Answer

The presence of many competitors in a market segment means a company must invest more in promotional activities to stand out and increase its market share. This is because the firm needs to differentiate its products or services from those of its competitors to attract customers.

What Can Be Said of the Level of Competition When