Question

question 6
0.5 pts
compared to undifferentiated marketing, the firm that practices differentiated marketing may generally expect:
lower inventory costs.
lower total production costs.
less sales by segment.
greater promotional costs.

Explanation:

• Undifferentiated marketing targets a broad market with a single marketing mix.
• Differentiated marketing targets multiple market segments with separate marketing mixes.
• Creating and promoting multiple marketing mixes (for different segments) in differentiated marketing leads to higher promotional costs compared to undifferentiated marketing (which has one marketing mix).
• Inventory costs are likely higher in differentiated marketing (as more product variations may be needed).
• Total production costs are usually higher (due to producing for multiple segments).
• Sales by segment are not necessarily less; in fact, targeting specific segments may increase sales in those segments.

Answer:

greater promotional costs.