A disadvantage of the concentrated targeting strategy is that
A) the firm's financial condition is tied to a single and specialized 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

The concentrated targeting strategy focuses on a single and specialized marketing mix, which means that the firm's financial condition becomes tied to that one product or service. This can be risky as any changes in the market, consumer preferences, or competition can impact the company's revenue and profitability. Therefore, the disadvantage of the concentrated targeting strategy is that the firm's financial condition is concentrated on a single product or service, making it vulnerable to changes in the market.

A Disadvantage of the Concentrated Targeting Strategy Is That