For a differentiation strategy to be effective, the product difference should NOT be based on: Question 10Answer a. Product design b. Method of distribution c. Price d. Broad market group of consumers

Select all that applySuccessful differentiation strategies allow companies toMultiple select question.command cheaper prices for their products.cultivate buyer loyalty.find cheaper distribution methods.increase unit sales.

Which of the following is true of the differentiation strategy?Group of answer choicesIt requires a company to be the lowest cost producer in its competitive environment.It requires companies to seek higher sales volumes since they charge lower prices.It places very little emphasis on understanding what constitutes customer value.It requires a company to be able to rapidly respond to changing customer needs. PreviousNext

A company that decides to pursue a differentiation strategy will:a.)target a smaller demographic or geographic market with specialized products or services.b.)follow the market leader and offer similar products with little variation.c.)add value to their products and services in order to attract customers who are willing to pay a higher price.d.)offer customers low-priced goods and services at a profit.

What is the disadvantage of product differentiation?Select one:a.Low cost of advertising and research developmentb.Increase brand valuec.High cost of advertising and research developmentd.Reduce competition

Differentiation, setting yourself apart from the competition, is one of the most important and effective marketing tools available to small business ownersGroup of answer choicesTrueFalse