A differentiation strategy is characterized by what target focus?

A differentiation strategy focuses on a broad target market. This approach involves offering unique products or services that stand out from competitors in a way that appeals to a wide audience. Companies employing this strategy aim to create value through distinctive features, quality, or customer service, allowing them to attract a larger customer base. By emphasizing what makes their offerings unique—whether it is advanced technology, superior quality, or exceptional service—these companies seek to reach as many potential customers as possible.

In contrast, a narrow target is typically associated with a niche strategy, which focuses specifically on a small, defined segment of the market. Cost-effectiveness relates to pricing strategies rather than differentiation, and standardized products suggest a commoditized approach where the aim is uniformity rather than uniqueness. Therefore, the broad target focus is fundamental to a successful differentiation strategy.