Question

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings, it is said to be pursuing a __________ strategy. a. stuck-in-the-middle b. standardization c. segmentation d. focus e. low-cost

Answer 1

Answer:

The correct answer is letter "C": segmentation.

Explanation:

The segmentation strategy consists of dividing the market according to different consumers' features such as age, gender, income, location or a combination of them. After that classification, a company can select which sector it is more likely to be successful according to the type of goods or service that must be provided and the resources of the entity.

The segmentation strategy allows businesses to give consumers a more specialized good or service that is better aligned to satisfy their needs.

Answer 2

Answer:

D

Explanation:

Focus strategy is said to be pursued when a company recognizes a relatively narrow market segment or a particular buyer group where competition is weakest and then tailored its production and product offerings towards this niche in order to serve the particular target or niche extremely well with the aim of earning a huge return on investment.

Focus strategy is pursued when a company recognizes that the differences in need of one market segment to another and then produce or deliver goods and services that serve the needs and requirements of this particular competitive segment