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What does identifying a target market allow a firm to do?
ACharge a higher price than every one of its competitors
BAvoid the need to carry out any marketing research work
CSell the same marketing mix to every buyer in the market
DUse its resources on the buyers most likely to purchase
Answer & Solution
Correct answer: D. Use its resources on the buyers most likely to purchase
1. Most organizations cannot afford to serve the total market for a product.
2. Identifying a target market focuses effort on the buyers most likely to purchase.
3. Concentrating on those potential customers lets the firm use its resources efficiently.
4. Targeting does not remove the need for research, since research is how the target is found.
5. Each target market needs its own mix, so one mix for everyone contradicts the idea.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.2 Creating a Marketing Strategy_
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