A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy: (a) results in cannibalization of products

A Concentrated targeting strategy refers to a strategy which focuses on selecting the potential customers for selling the goods and services to the company. The strategy aims at segmenting the market into various segments, choosing an appropriate segment of the market and then determining the products which need to be offered to the segment. Whereas, an undifferentiated strategy for targeting takes place when the marketers try to ignore the differences in a clearly visible segment within the market and the organization aims at using a strategy which is planned to appeal to a large number of people. Thus, the concentrated strategy for targeting focuses on selecting a niche market for targeting the efforts of marketing. (Correct answer: b)