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."

Answer 1

Answer:

The correct answer is letter "C": differentiation strategy.

Explanation:

After a company has conducted a market segmentation classifying customers by age, gender, income, location and some other features, the firm must decide if focusing in one single market or if its resources allow them to conduct operations in more than one.  

When the entity decides in which markets their production processes will be focused on the differentiation strategy is implemented. With this approach, the company uses the information obtained from the market segmentation to create goods or services tailored to consumers' needs attempting to provide a product that better matches their needs.