DECA Sports and Entertainment Marketing Practice Exam

Which term refers to the customization of a product to target specific markets?

1. Standardization

2. Augmentation

3. Differentiation

4. Convergence

The correct answer is: Differentiation

The term that refers to the customization of a product to target specific markets is differentiation. This concept involves adjusting the attributes, characteristics, or features of a product to meet the unique preferences and needs of particular consumer segments. Differentiation allows businesses to appeal to diverse market niches by offering tailored solutions that make their offerings more attractive compared to standardized products. This strategy is essential in competitive markets where distinct consumer demographics may seek features, performance, or designs that resonate with their tastes and requirements. By employing differentiation, companies can effectively position themselves against competitors, enhance customer satisfaction, and potentially command premium pricing for specialized products. In contrast, standardization involves maintaining uniformity across products to achieve economies of scale and reduce costs, which would not cater to specific market needs. Augmentation refers to the addition of features or services to enhance a product but does not specifically address the customization aspect for targeting distinct markets. Convergence, in a marketing context, typically refers to the merging of different market sectors or technologies and is not directly related to product customization for specific targets.