__ strategy is used by firms to target diverse customer segments and mitigate negative spillovers across product categories.

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BlackTom AI · Accepted Answer

The question asks to identify the strategy name that targets diverse customer segments and mitigates negative spillovers across product categories.

A differentiated strategy, also called differentiated marketing or multi-segment marketing, explicitly involves treating multiple customer segments as distinct markets and tailoring products, messaging, and offers to each segment. This approach helps firms address the specific needs and preferences of diverse groups rather than adopting a one-size-fits-all approach.

By designing distinct offerings or positioning for different segments, a firm can reduce cross-segment conflicts and negative spillovers that might occur when a single product line or brand appeals broadly but imperfectly to all customers. For example, separate product variants, features, or branding can minimize cannibalization between categories and allow clearer value propositions for each target group.

In contrast, an undifferentiated strategy would treat all customers as one market, which risks misalignment with diverse needs and higher spillover effects across categories due to generic positioning. A concentrated strategy focuses on a single segment, which may leave other segments underserved and does not align with targeting multiple diverse groups.

Thus, the statement aligns with the concept of a differentiated strategy: firms deliberately segment markets, customize offerings, and manage product lines to address multiple customer groups while controlling cross-category spillovers through clear differentiation and tailored value propositions.

MKTG1021.07|.08|.09 Fall 2025 Marketing Principles [Wang] MKTG1021-Final Exam- Requires Respondus LockDown Browser

__ strategy is used by firms to target diverse customer segments and mitigate negative spillovers across product categories.

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