The marketing emphasis of a company pursuing a broad differentiation strategy usually is to
A) underprice rival brands with comparable features.
B) tout differentiating features and charge a premium price that more than covers the extra costs of differentiating features.
C) out-advertise rivals and make frequent use of discount coupons.
D) emphasize selling direct to end-users and promoting personalized customer service.
E) communicate the product's ability to serve the customer's every need.

Question

Quizplus · Accepted Answer

A broad differentiation strategy involves incorporating unique and desirable features into a product or service that are valued by customers and different from those of competitors. Therefore, the marketing emphasis should be on touting these differentiating features and charging a premium price that more than covers the extra costs of these features. This approach allows the company to create a perception of superior value in the minds of customers while also generating higher profit margins.

The Marketing Emphasis of a Company Pursuing a Broad Differentiation