Discuss the advantages and disadvantages of undifferentiated targeting, differentiated targeting, and concentrated targeting
What will be an ideal response?
An undifferentiated targeting strategy ignores market segment differences and targets the whole market with one offer. This mass-marketing strategy focuses on what is common in the needs of consumers rather than on what is different. Undifferentiated targeting provides economies of scale, but does not allow for individualization of the marketing mix. In contrast, a differentiated strategy targets several market segments and designs separate offers for each. Companies hope for higher sales and a stronger position within each market segment. Concentrated targeting goes after a large share of one segment instead of going after a share of a large market. These segments may be overlooked, unimportant, or under worked. Concentration offers smaller companies an opportunity to compete by focusing their limited resources more effectively.
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Stemway requires a new manufacturing facility. Management found three locations; all of which would provide needed capacity, the only difference is the price. Location A may be purchased for $500,000. Location B may be acquired with a down payment of $100,000 and annual payments at the end of each of the next twenty years of $50,000. Location C requires $40,000 payments at the beginning of each of the next twenty-five years. Assuming Stemway's borrowing costs are 8% per annum, which option is the least costly to the company?
a. Location A. b. Location B. c. Location C. d. Location A and Location B.
Investiture socialization programs try to strip away new hires' personal characteristics
Indicate whether the statement is true or false