Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which marketing strategy involves targeting several segments with different marketing mix strategies?

1. Mass marketing

2. Concentrated marketing

3. Differentiated marketing

4. Niche marketing

The correct answer is: Differentiated marketing

The identified strategy is differentiated marketing, which focuses on targeting multiple segments of the market, each with a tailored marketing mix. This approach recognizes that different segments have unique needs and preferences, allowing businesses to create specific offerings that speak directly to various groups. By employing differentiated marketing, companies can effectively cater to the diverse demands of diverse customer segments, such as different age groups, income levels, or geographic locations. This strategy not only enhances customer satisfaction by providing products and services that better meet individual needs but also allows businesses to maximize their market reach and potential profitability. In contrast, mass marketing aims to appeal to the whole market with a single, uniform strategy. Concentrated marketing focuses on one specific segment, targeting it with a single marketing mix, while niche marketing is even more specialized, targeting a very narrowly defined segment of the market. Each of these strategies operates on narrower scopes compared to the broader approach of differentiated marketing.