Question

n the context of the strategies for selecting target markets, which of the following is a disadvantage of undifferentiated targeting? a. It leads to cannibalization. b. It makes a company more susceptible to competitive inroads. c. It results in market segments that are too small. d. It increases the production and marketing costs of a company.

Answer 1

The correct answer is b. It makes a company more susceptible to competitive inroads.

Step-by-step explanation:

Market segmentation is essential to know how is the public that makes up the market in which we are. There are a number of advantages and disadvantages of market segmentation that you should keep in mind, before venturing into such a study for your company.

Errors when establishing the segment

The first and main disadvantage of including market segmentation techniques is the wrong selection of a segment.

Keep in mind that if the company chooses a wrong market fraction, too small or irrelevant for the company's business, then the business will find it difficult to market its product.

Commercial Saturation Issues

Another drawback derived from this strategy is to enter a market segment in which there is strong competition and saturation. When we are about to create a company or product we must take into account the development possibilities we have in that market.