A disadvantage of the concentrated targeting strategy is that:
A)the firm's financial condition is tied to a single and specialised marketing mix.
B)large sales volumes cannot be generated.
C)production costs may be higher than with other strategies.
D)marketing personnel may become dissatisfied with the limited opportunities provided by this approach.
E)marketing costs are often higher than for other strategies.

Question

Quizplus · Accepted Answer

A concentrated targeting strategy focuses on a narrow and specialized market segment which could create a financial dependence on that segment. If the market segment experiences any changes, such as economic hardships or changing preferences, the firm's financial condition could be negatively impacted. This makes the company vulnerable to external factors beyond their control.

A Disadvantage of the Concentrated Targeting Strategy Is That