Tammy poses this question at the end of her post: Do you think multi-segment targeting strategy can have disadvantages? What do you think they are?
I believe any strategy that is employed will always have the potential for disadvantages, and multi-segment targeting is no exception. Tammy mentions the the main disadvantage being cannibalization, thus creating competition between the company's own products. This competition can be good or bad for the company, as she also says. I do not see it being that much of a disadvantage though. Competition between their own products can be more manageable than with other companies. They would have more control over what was happening, and they would still be making money. Worse case scenario, focusing on what product, could potentially end up wiping out another product that was very successful in the past.
Can you think of a company where cannibalization has come into play with their products?
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