Market Penetration
What is the primary goal of market penetration?
Answer: To increase market share in existing markets with existing products.
What does market development involve?
Answer: Expanding into new markets with existing products.
What is the focus of product development?
Answer: Introducing new products to existing markets.
What does diversification mean in the context of business strategy?
Answer: Introducing new products into new markets.
Name one strategy a company might use for market penetration.
Answer: Price reductions or increased marketing efforts.
Name a method for entering a new market.
Answer: Geographic expansion or targeting a different demographic.
Name a common approach to product development.
Answer: Enhancing existing products or creating entirely new ones.
Name the two types of diversification.
Answer: Related diversification and unrelated diversification.
How can customer loyalty affect market penetration?
Answer: Higher customer loyalty can lead to repeat purchases and increased market share.
What challenges might a company face in market development?
Answer: Understanding local regulations and consumer preferences.
How can customer feedback influence product development?
Answer: It provides insights into customer needs and preferences.
What are the potential benefits of diversification?
Answer: Risk reduction and new revenue streams.
What risks are associated with a market penetration strategy?
Answer: Increased competition and potential price wars.
How can partnerships aid in market development?
Answer: They can provide local insights and distribution channels.
What risks are involved in product development?
Answer: High costs and potential market rejection.
What are the challenges associated with diversification?
Answer: Lack of expertise in new markets and products.
Provide an example of a company successfully using market penetration.
Answer: Coca-Cola increasing its advertising to boost sales in existing markets.
Give an example of market development from a well-known company.
Answer: Starbucks opening stores in international markets.
Provide an example of a company that has successfully implemented product development.
Answer: Apple with its new iPhone models.
Give an example of a successful diversification strategy.
Answer: Disney expanding from animation to theme parks and media.