Certified Park and Recreation Professional (CPRP) Practice Exam

What type of market approach is often used by commercial recreation agencies?

1. Undifferentiated

2. Differentiated

3. Concentrated

4. Mass marketed

The correct answer is: Concentrated

The concentration market approach is commonly employed by commercial recreation agencies because it focuses on targeting a specific market segment with tailored services or products. This strategy allows agencies to establish a deep understanding of the needs, preferences, and behaviors of a narrower audience, enabling them to create unique offerings that resonate strongly with that group. By honing in on a specific segment, commercial agencies can optimize their marketing efforts and resources, achieving higher efficiency and effectiveness compared to broader approaches. This method typically leads to greater customer loyalty and satisfaction, as the offerings are designed to meet the distinct demands of the target demographic. In contrast, other approaches, like the undifferentiated strategy, would try to appeal to a broad audience without customization, which may dilute the effectiveness of services. Differentiated approaches target multiple market segments but require more complex planning and resources. Mass marketing aims to reach the widest possible audience, often overlooking specific customer needs, which can lead to less effective engagement in niche markets typical of many commercial recreation settings.