CLEP Marketing

Category - Segmentation

Fernbrook Company limits itself to producing and packaging distilled water for use in medical and scientific research establishments. Marketing this product to a single segment of the distilled water market is a(n)
  1. Concentrated target strategy
  2. Differentiated target strategy
  3. Focused target strategy
  4. Downstream target strategy
  5. Upstream target strategy
Explanation
Answer: A - Fernbrook Company limits itself to producing and packaging distilled water for use in medical and scientific research establishments. Marketing this product to a single segment of the distilled water market is a concentrated target strategy. This type of strategy is used when an organization targets a single segment of its target population, using one marketing mix. A distinct advantage of a concentrated target strategy is that it allows a company to specialize in promoting to a single segment and concentrating its energy and expertise to maximize its profit returns.
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