Which of the following is a disadvantage associated with an undifferentiated targeting strategy?
a. It requires a firm to tailor marketing mixes to the preferences of market segments.
b. It often results in product offerings that are unimaginative and sterile.
c. It involves a high risk of cannibalization of products.
d. It is expensive because of high production and marketing costs.
ANSWER: b
A disadvantage of an undifferentiated targeting strategy is that products emerge by default rather than design, resulting in often sterile, unimaginative product offerings that have little appeal to anyone. In an undifferentiated targeting strategy, a firm adopts a mass-market philosophy, viewing the market as one big market with no individual segments.
Business