The marketing director of Alex plc is currently formulating whether one of the company’s products, which is aimed at a small niche market, should be differentiated from its close competitors, although at this stage he is unsure how such differentiation would be achieved in practice.
The decision on whether to differentiate or not is a decision concerning the company’s?
Select ONE answer:
- Functional strategy
- Business strategy
- Competitive strategy
- Product/market strategy
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct == > (1) A functional strategy (A) would be concerned with the role of the marketing function itself within the company. Business strategy (2) is concerned with how the marketing mix would be adjusted in due course if a competitive strategy of differentiation was decided upon. Product/market strategy (4) is concerned with how the business will grow (Ansoff’s Matrix). Competitive strategy (3) is concerned with how the business will compete in terms of source of competitive advantage (cost or differentiation) and extent of competitive scope (broad or narrow).
- Not correct
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